emini Friday 25th May 2018
On 05/03 the 7mn Value Area Low at 2595 was tested. The 7mn Value Area High is at 2745. The 12mn poc is at 2672 and as long as ES holds above that level it is in a strong LT price location. Currently ES is ranging around 2724, the minor poc. With more time at that level it is possible the 12mn could migrate to that price. That would lift the VAH and remove the Resistance at that level.
LT Support = 2672 (12mn poc)
Stocks>50dyma numbers: Nyse 62% (from 63%), Nasdaq 67% (unch), R2000 69% (from 70%). numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 21.00. On 04/18, the ratio fell to 13.93, a 43 day low.
Bonds: TLT – is printing below 121.00, the major poc, in a weak LT price location. Last week fell to its lowest level since July 2015 but has rallied back above 118.50, the 6mn poc.
Dollar Index: currently printing at its highest level since December.
Gold – GLD closed below 125.23, the 4mn poc, at the start of last week and fell sharply. Up sharply on Thursday.
Oil: USO – On Tuesday printed its highest level since November 2015.
GBPUSD: in mid April the major Value Area High at 1.4212 was probed for the second time this year and was rejected again. The Support at 1.3965 (6mn poc) was then broken and at the end of last month the Support trendline off the 2016 low was broken. On Wednesday printed its lowest level since January.
EURUSD: On Wednesday EURUSD broke below 1.1755, the 1year poc Support and is currently printing its lowest level since November.
USDJPY: The 6mn poc for this chart migrated to 107 five weeks ago and the chart has been printing up from that level. On Monday there was a rejected into 111.30, the 2year poc Resistance and the chart is lower from there.
