emini 9th May 2019 – pre-open from ChartProfit
Value Areas on Monday and Tuesday were generated below 2910 (which was) the 2month poc, leaving ES in a weak position. The 2month has now migrated lower to 2894 and price relative to this level is important to monitor. Pre-open ES is printing below 2860. Breadth has deteriorated, see below and Pulse Chart.
Stocks>50dyma numbers: Nyse 48%, Nasdaq 49%, R2000 50%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 22.6, having reached 23.93 last week, 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 Wed at 121, the major poc. Chart is in a weak position if it prints below that level. Note also that the major poc for cash gold is at 1286.50. This has been broken and Gold has not recovered back above 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.
GBPUSD: is in a weak position below 1.3130, the maj poc. Recently found Support at 1.2915, the 1/2R off this year’s low and has bounced. Price below that level (1.2915) 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 is at 112.60. Chart is currently in a weak position below that Resistance. Has fallen sharply last few days.
