emini 13th May 2019 – pre-open from Chartprofit
Value Areas have been genrated below 2894, the 2month poc, see Thursday’s pre-open, highlighted, comments. This is a weak price location. Friday’s session saw a rejected test of Thursday’s low and a rally back to that poc Resistance. Bulls would want to see price recovering back above 2894 as quickly as possible.
Market Charts: All U.S. major Market Charts turned neutral this week (from positive).
Stocks>50dyma numbers: Nyse 50%, Nasdaq 50%, R2000 53%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 23.07, having reached 23.93 the previous week, a seven month high. On 9th Jan the ratio fell to 5.54, the lowest since July 2016.
Bonds – TLT: 03/28 TLT printed its highest level since December ’17. Has retraced from there but as long as TLT holds above the 121 major Support it is in a strong position.
Dollar Index: 04/25 the index reached its highest level since May 2017, breaking above the highs of December and March around 97.7. However that breakout has not held and DXY has printed back below the level of those highs. In the LT as long as the chart is printing above the major at 94.80 it is in a strong position but we should be open to the possibility of a reversal here.
Gold: GLD – closed on Thursday (and friday) back above 121, the major poc. Chart is in a weak position if it prints below that level. Today, Cash gold is printing back above its major at 1286.50.
Oil: USO – tested 11.41, the Major Poc Support on 03/08. Formed a higher low at that Support and rallied strongly. On 04/23 closed at its highest level since October but has retraced from there. First Level Support is at 12.79, the 18mn.
GBPUSD: is in a weak position below 1.3130, the maj poc. Recently found Support at 1.2915, the 1/2R off this year’s low and has bounced. Price below that level (1.2915) would indicate further weakness.
EURUSD: in April printed its lowest level since June 2017 having broken below March’s low (1.1174). Price below 1.1310 keeps the chart in a weak LT position.
USDJPY: the major poc migrated lower to 111.17. Chart is currently in a weak position below that level. Has fallen sharply over the last few days.
