emini 4th March 2019 – pre-open from Chartprofit
Last week ES generated all Values Areas above 2777.00, the minor (20dy) poc, and on Wednesday there was a brief, rejected test of this Support, see chart. As long as ES holds this level it is in a strong price location. Pre-open today ES is printing above 2800.
Market Charts: All major Market Charts remained positive.
Stocks>50dyma numbers: Nyse 84%, Nasdaq 81%, R2000 82%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 18.46, a 4 month high. On 9th Jan the ratio fell to 5.54, the lowest since July 2016. Down from 27.5 in early September.
Bonds – TLT: Last week TLT broke below 121.0, the major poc. This is a weak position. There is 1/2R Support at 119.9 (off November low).
Dollar Index: as long as DXY prints above 94.80, the major poc, it is in a strong LT price location. In the ST, chart is printing back above 96.38 (the minor 1/2R off December high) and this is First Level Support.
Gold: GLD – previously I wrote that GLD had reached the major Value Area High (VAH) at 127.15 and said that “this could cap the upside until the maj poc (currently at 121) migrates higher”. GLD has been sharply lower since then.
Oil: USO – has been printing above 11.41, the Major Poc. This is an important chart. If USO is printing above 11.41 it is a positive for risk-on.
GBPUSD: in December the chart bounced from a second test of 1.2481 (30mn poc) and has rallied. Two weeks ago the major poc (measured on a 30minute basis) migrated lower to 1.2930. Since then the chart has been printing above that level in a stronger LT position and has printed its highest level since July last year. There is Resistance at 1.3400 = 1/2R (off 2018 high)
EURUSD: the Maj Support is at 1.131 (maj poc). EURUSD needs to hold this Support to remain in a strong location.
USDJPY: the major poc is at 112.60. Chart is rallying back towards that Resistance.
