pre-open emini analysis 18th August 2016 from Chartprofit
No Significant Buying or Selling has been marked for nineteen days. This is an unusually long stretch. If Selling is not marked soon I would expect Buyers to auction ES higher. If chart can hold the minor poc (20 day) at 2176.00 the current distribution suggests development to 2220. The poc of that distribution is at 2158.50 and as long as ES holds that level it is in a strong price location.
First Level Support = 2158.50 (3mn poc)
Second Level Support = 2087.00 (major poc)
Stocks>50dyma numbers: Nyse 67% (unch), Nasdaq 68% (unch), R2000 66% (unch). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio is at 6.34. Down from 7.74 on 08/08 which was a seven month high for the ratio.
Supporting Charts:
Bonds: TLT closed in a ST weak price location below 140.30, the min 1/2R off the July high. Price printing time back above that level would be a positive. More important Support is at 130.77 (3year poc).
Dollar Index: has this week broken the important Support at 95.25 (2yr poc). The 1/2R off the May low comes in at 94.75 and this Support has also been broken. Weak price location.
Gold: On Wednesday GLD closed above 128.13, the minor 1/2R off the July high. In the LT as long as the chart holds above 118.22 (maj poc) it is in a strong price location.
Oil: USO – closed on Wednesday back above 10.78, the 9mn poc. Crude Futures (Sep) held the 1/2R off the February low earlier this month and has rallied strongly.
EURUSD: is today probing above 1.1313, the 4yr poc. Time above this level would be a positive.
click to enlarge graphic
