emini 31st May 2018 – pre-open from Chartprofit
Wednesday was a positive day. ES generated most of its Value Area back above 2718, the 12mn poc, and Aggressive Buying was marked. Breadth numbers improved, see below, and the Rydex Ratio fell back, see below. ES needs to hold above 2718 to maintain its strong location.
Support = 2718.00 (12mn poc)
Stocks>50dyma numbers: Nyse 64% (from 56%), Nasdaq 69% (from 65%), R2000 73% (from 68%). numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 20.91. Down from 24.0 on a strong day for the market – that’s usually ST bullish. Should remember that Tuesday’s ratio was the highest since 02/02 and only six ratios higher than this in the database.
Bonds: TLT – has rallied very strongly over the last five days and closed on Tuesday and Wednesday back above 121.00, the major poc, in a strong price location.
Dollar Index: on Tuesday printed its highest level since December but is lower from there.
Gold: GLD – on 05/11 there was a rejected probe into 125.23, the 4mn poc, and chart fell sharply from there. Note that Cash Gold found Support last week at 1286.50 its major poc. Cash below that level would be a weaker price location.
Oil: USO – early last week chart printed its highest level since November 2015 but has fallen sharply from there. Closed on Tuesday at a 29day low; rallied a little on Wednesday.
GBPUSD: in mid April the major Value Area High at 1.4212 was probed for the second time this year and was rejected again. The Support at 1.3965 (6mn poc) was then broken and at the end of last month the Support trendline off the 2016 low was broken. On Tuesday printed its lowest level since November.
EURUSD: Last week EURUSD broke below 1.1755, the 1year poc (now Resistance) and on Tuesday printed its lowest level since July.
USDJPY: The 6mn poc for this chart migrated to 107 six weeks ago and the chart has been printing up from that level. Early last week there was a rejected probe into 111.30, the 2year poc Resistance and the chart is lower from there.
