emini 9th January 2018 – pre-open from Chartprofit
See previous, highlighted, comments. Tuesday’s session generated a third, consecutive higher Value Area. Pre-open today ES is printing above 2580.
Other charts may offer clues over the next few days: Bonds (TLT) – Dollar Index – Gold (GLD) – Oil (USO) – EURUSD, see below. Also German DAX is currently printing back above 10672, its 4 yr poc and UK FTSE 100 is printing above 6820, its maj poc.
Stocks>50dyma numbers: Nyse 31% (from 24%), Nasdaq 36.6% (from 30%), R2000 35% (from 28%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 5.60, the lowest since July 2016. Since the market low on 12/26 the ratio has fallen as the market has rallied. That’s encouraging. The Ratio high was 27.5 in early September.
Bonds – TLT: using 30minute data the major migrated lower from 121.0 to 118.84 earlier in the month. With time at 121.0 it could easily migrate back to that level. Price is currently printing above 121 in a strong position but is lower this week and may test that Support. Price below 121 would be a positive for risk-on.
Dollar Index: as long as DXY prints above 94.80, the major poc, it is in a strong LT price location. Price below 94.80 would be a positive for risk-on.
Gold: GLD – last week GLD printed its highest level since June and closed on Tuesday above 121.00, the major poc, in a strong position. Cash Gold indicates a lower open for GLD today. Price below 121 would be a positive for risk-on.
Oil: USO – on 12/07 chart found Resistance at 11.41, the Major Poc and fell sharply lower from there. Has rallied back and Futures indicate a higher open today for USO. This is an important chart. Price above 11.41 would be a positive for risk-on.
GBPUSD: GBPUSD had bounced again from a second test of 1.2481 (30mn poc). Potentially a double-bottom here if that Support holds.
EURUSD: chart is still having a problem printing above 1.1450, the 1/2R, but has been Supported by the 1.1310 level (previously a major controlling price). A higher low above 1.1450 would be a positive for risk-on.
USDJPY: the major controlling price recently migrated to 112.60. Chart is currently printing below that level in a weak price location.
