ES emini 10th January 2020
Buyers kept auctioning ES back above the 3228 poc, as I wrote “this is encouraging”, see Wednesday’s highlighted comments. Wed/Thu ES spent time above the minor VAH at 3240 which is a positive. First sign of technical weakness on the daily timeframe would be a Value Area generated below the 3228 poc.
Stocks>50dyma numbers: Nyse 62% (unch), Nasdaq 66% (from 65%), R2000 56% (from 57%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 24.9. On 12/27 the ratio reached 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 Thursday. Price above the poc would be a stronger location.
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 in December and price is currently above that level.
Gold: on Tuesday closed above 146.50, the major VAH, at its highest level since 2013. Acceptance (time) at or above this level would be a further positive. There is major Support now at 143.0, the 1/2R off 2011 high.
Oil: On Monday USO printed its highest level since April but closed below 12.73 (1/2R off 2018 high) on Thursday.
GBPUSD: rallied strongly from early October. In December the major poc migrated to 1.2933 and GBPUSD needs to hold that Support to remain in a strong position – GBPUSD rallied from a test of that Support on 12/24.
EURUSD: has probed the 1.12 poc again this week. Price above that level would be a stronger location but that probe has been rejected so far.
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 in December and price is currently above that level.
Gold: on Tuesday closed above 146.50, the major VAH, at its highest level since 2013. Acceptance (time) at or above this level would be a further positive. There is major Support now at 143.0, the 1/2R off 2011 high.
Oil: On Monday USO printed its highest level since April but closed below 12.73 (1/2R off 2018 high) on Thursday.
GBPUSD: rallied strongly from early October. In December the major poc migrated to 1.2933 and GBPUSD needs to hold that Support to remain in a strong position – GBPUSD rallied from a test of that Support on 12/24.
EURUSD: has probed the 1.12 poc again this week. Price above that level would be a stronger location but that probe has been rejected so far.
