emini ES 30th December 2019 – pre-open from ChartProfit
Aggressive Buying (green-at-top) was marked on Thursday. First sign of weakness now would be a day session close that Buying Day low, 3229, dotted line on chart.
Stocks>50dyma numbers: Nyse 73%, Nasdaq 68%, R2000 66%.. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 28.62, the highest reading in my database. Only twice before has the ratio printed above 26. Once in Jan 2018 and the market sold-off quickly, and once in Aug 2018 after which the market traded sideways for a month and then sold-off.
Bonds – TLT: The 5mn poc is at 139.95. TLT closed below that level on Friday. Weak position.
Dollar Index: on 10/01 DXY probed the Maj Value Area High at 99.50. As I wrote at the time “price will often be rejected from these Maj VAHs”. Chart declined from that high through October and then rallied back to test the 1/2R at 98.4 and failed at that Resistance. As I have been writing “New trends often start with a rejected test at the 50% retracement so I’m watching price action from here”. The 3yr poc migrated to 97.38 last week and currently DXY prints below that level in a weak position.
Gold: Found Resistance three times recently at 143 (major 1/2R) and declined from there to its lowest level since early August. Is currently rallying back towards that Resistance.
Oil: USO rallied back above 11.95, 1/2R off 2016 low, earlier in the month. It is in a strong position if that level is held.
GBPUSD: has rallied strongly from early October and had been printing above the 1.3130 major poc. The major poc has now migrated to 1.2933 and GBPUSD needs to hold that level to remain in a strong position.
EURUSD: In early October chart printed its lowest level since May 2017 but rallied from there. Earlier this month, and again today the poc Resistance at 1.120 has been probed.
Dollar Index: on 10/01 DXY probed the Maj Value Area High at 99.50. As I wrote at the time “price will often be rejected from these Maj VAHs”. Chart declined from that high through October and then rallied back to test the 1/2R at 98.4 and failed at that Resistance. As I have been writing “New trends often start with a rejected test at the 50% retracement so I’m watching price action from here”. The 3yr poc migrated to 97.38 last week and currently DXY prints below that level in a weak position.
Gold: Found Resistance three times recently at 143 (major 1/2R) and declined from there to its lowest level since early August. Is currently rallying back towards that Resistance.
Oil: USO rallied back above 11.95, 1/2R off 2016 low, earlier in the month. It is in a strong position if that level is held.
GBPUSD: has rallied strongly from early October and had been printing above the 1.3130 major poc. The major poc has now migrated to 1.2933 and GBPUSD needs to hold that level to remain in a strong position.
EURUSD: In early October chart printed its lowest level since May 2017 but rallied from there. Earlier this month, and again today the poc Resistance at 1.120 has been probed.
