emini analysis 26th January 2017 – pre-open from Chartprofit
On Tuesday ES broke out of its range to a new high. Breadth and Momentum improved (see Pulse Chart), and Aggressive Buying (green-at-top) was marked. Wednesday’s Value Area was higher and pre-open today ES is printing above 2290. As long as ES holds above 2265.00 it is in a strong price location.
First Level Support = 2265.00 (4 month poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio was lower at 8.47 (from 10). This on a day when the market was strongly higher. On 01/03 the ratio reached 11.83, the highest ratio since June 2015.
Stocks>50dyma numbers: Nyse 74% (from 71%), Nasdaq 63% (from 59%), R2000 65% (from 60%). Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – two weeks ago the major poc migrated higher to 121.60. TLT has closed below that level for six days and sharply lower on Wednesday. TLT must print back above that poc to maintain a strong price location.
Dollar Index: On 01/03 the index printed its highest level since April 2003. Off from there and printed a 35 day earlier today – has now recovered a little to print a three day high.
Gold: 11/23 GLD broke below 115.69, the 1/2R off last year’s low which put the chart in a weak price location. This Resistance was probed last week but GLD is off from there. Cash gold also stalled at 1210.38, its equivalent 1/2R Resistance and is printing below that level and lower today.
Oil: USO – since the start of December USO has been printing above 10.78, the maj poc. Chart must hold this Support to remain in a strong price location.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. On 01/03 printed its lowest level since early 2003. Printed a 33day high on Tuesday.
click to enlarge graphic
