emini analysis 24th October 2017 – pre-open
Significant Selling (red) has not been marked for 45days. Within that period Aggressive Buying (green-at-top) has been marked six times and the market is higher so this is Effective Buying. As long as ES holds above 2549 it is in a strong price location in the ST.
First Level Support = 2549 (2mn poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 12.81. On 08/22 the ratio reached 15.64 which is the highest in the database.
Market Charts: Nyse & Nasdaq remained positive. R2000 remained neutral.
Stocks>50dyma numbers: Nyse 71% (from 75%), Nasdaq 71% (from 75%), R2000 74% (from 78%). Numbers >50 are supportive.
Bonds: TLT – 09/08 TLT reached its highest level since November but retraced from there to print a nine week low on 10/06 when the 9mn Support at 123.40 was briefly tested. Last week ended with a sell-off and that Support may be tested again this week.
Dollar Index: The 8mn poc is at 93.46. Currently the index is printing above that level.
Gold: 09/07 GLD printed its highest level since September – retraced from there to briefly test the Major Support at 119.84. As long as chart holds above this level it is in a strong price location.
Oil: USO – printing above 10.14, the major poc Support. As long as chart holds above this level it is in a strong price location.
GBPUSD: 09/20 GBPUSD printed its highest level since June 2016. Retraced from there and is today printing just below1.3234 (1/2R). The 9mn poc is at 1.2925 and this is LT Support.
EURUSD: 09/08 printed its highest level since Jan 2015. Retraced from there to approach the August low but has rallied back a little.
USDJPY: 111.30 is the 2year poc – for five weeks the chart has been printing above that level which is now Support. Stronger price location. The 1/2R off the December high is at 112.98 and the chart is printing above that level.
click to enlarge graphic
