emini analysis 23rd March 2017 – pre-open from Chartprofit
Tuesday’s red-at-bottom low was tested on Wednesday and an overlapping/lower Value Area was generated. If the 2month poc remains at 2367 and ES is printing below that level it is in a weak price location. There is no useful, local Support level. Breadth and price momentum have deteriorated, see Pulse Chart.
Dayframe: ES printing time above 2347 would be the first, very minor, indication of strength.
First Level Resistance = 2367.00 (2month poc)
Key Chart: IWM is in a weak price location below 136.70, its 2mn poc.
Sentiment: My version of the Rydex Assets Ratio was higher at 11.21 (from 10.0). The second highest ratio in the database was recorded on 1st March at 14.02.
Stocks>50dyma numbers: Nyse 41% (unch), Nasdaq 39% (unch), R2000 32% (from 33%). Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – the major poc is at 119.00. Two weeks ago broke back below that level but has closed back above it this week. Now back in a strong price location. Key Chart. Futures indicate a lower open today for TLT.
Dollar Index: fell heavily on Wednesday last week and is now printing back below 101.00, the 6mn poc, in a weaker price location.
Gold: last Wednesday chart rallied back above 115.69, the 1/2R off last year’s low which is stronger price location and has held that level. Has now reached 119.0, the 1/2R Resistamce off the July 16 high.
Oil: USO – earlier this month spent four days printing below 11.44, the major poc and then fell sharply to its lowest level since November. Weak price location. Key chart. Oil may be a problem for equities.
GBPUSD: the 15mn poc is at 1.2478. Chart tested that level but has not printed significant time above it.
EURUSD: chart is currently printing above 1.0597, the 7mn poc Support and on Wednesday printed a 34day high.
USDJPY: The 1/2R off the 2015 high comes in at 112.47. Chart is printing below that level and on Wednesday printed its lowest level since November.
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