emini SP500 14th May 2019 – pre-open from ChartProfit
Value Areas have been generated below 2894, the 2month poc, see Thursday’s pre-open, highlighted, comments. This is a weak price location. Friday’s session saw a rally back to that poc Resistance but ES opened much lower on Monday. Should ES fall further there is Support at 2774.0, the 12mn poc, and more important Support at 2718.0, the major poc. Breadth numbers deteriorated again, see below.
Stocks>50dyma numbers: Nyse 35% (from 50%), Nasdaq 36% (from 50%), R2000 38% (from 53%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio fell sharply to 18.74, from 23.07. The ratio recently reached 23.93, 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, and was sharply higher on Monday. Chart is in a strong position if it can hold that level.
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 – USO closed below that level on Monday.
GBPUSD: is in a weak position below 1.3130, the maj poc. the 1/2R off this year’s low and has bounced. Price below 1.2915, the 1/2R off this year’s low, 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.
