emini analysis 25th August 2017 – pre-open from Chartprofit
The last three Value Areas have been printed entirely above 2436.50 (7mn poc) which is a stronger price location than Friday/Monday, see highlighted comments. During Thursday’s session the 2436.50 Support was briefly tested and held, see chart.
Note though, that the Pulse Chart remains weak – currently daily price momentum for SPY is negative and down and the Breadth indicator is red. And see Sentiment, below.
First Level Resistance = 2464.50 (2mn poc)
First Level Support = 2436.50 (7mn poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 11.95. On Tuesday the ratio reached 15.64 which is the highest in the database. The ratio reaching a new high has historically been a warning for the market.
Stocks>50dyma numbers: Nyse 41% (unch), Nasdaq 36% (from 34%), R2000 31% (from 30%). Numbers >50 are supportive.
Bonds: TLT – since mid-May TLT has been printing above 121.63, the 8mn poc, in a strong price location.
Dollar Index: 07/14 broke below the Support at 95.57, the 2yr poc, and then fell sharply. Chart remains below that level in a weak LT price location.
Gold: GLD is printing back above 119.84, the maj poc in a strong LT price location. On Friday cash Gold reached its highest level since November.
Oil: USO – the major poc has migrated lower from 11.44 to 10.14. USO is printing below that level in a weak price location.
GBPUSD: as long as chart holds above 1.278, the maj poc, it is in a strong price location in the LT. In the ST, the 5mon poc has migrated lower to 1.2884 – price printing time above that level would be an indication of strength.
EURUSD: in early July EURUSD found higher low Support at 1.1329, the maj poc and has rallied strongly from there. Earlier this month chart reached its highest level since early 2015.
USDJPY: 111.30 is the 2year poc. Currently the chart prints below that level in a weak price location. 108.87 is the 1/2R off 2016 low and has provided Support three times this year. Price breaking this proven Support would be an indication of further weakness. Currently price is very close to this level.
click graphic to enlarge
