emini analysis 24th March 2017 – pre-open from Chartprofit
Thursday’s session generated an overlapping/higher Value Area. However ES closed towards the low of the session and the rally early in the session did not retrace much of Tuesday’s Effective Selling day. With ES printing below 2367, the 2month poc, ES is in a weak price location and Sellers look to be in control of the dayframe. Significant Buying marked above 2347 (very minor poc) would be the first minor indication of strength. Breadth and price momentum have deteriorated, see Pulse Chart.
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 slightly higher at 11.57. The second highest ratio in the database was recorded on 1st March at 14.02.
Stocks>50dyma numbers: Nyse 44% (from 41%), Nasdaq 41% (from 39%), R2000 35% (from 32%). 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.
Dollar Index: fell heavily last week and is printing back below 101.00, the 6mn poc, in a weaker price location.
Gold: last week the 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 Resistance off the July 16 high and stalled.
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 is attempting to print time above that level.
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 Thursday printed its lowest level since November.
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