emini analysis 27th March 2017 – pre-open from Chartprofit
Friday’s session generated another overlapping Value Area. Wednesday through Friday there was an unimpressive retracement of Tuesday’s sharp decline. With ES printing below 2367, the 2month poc, it is in a weak price location and Sellers look to be in control of the dayframe. Unfortunately the obvious Support is down at 2265, the 8mn poc. Significant Buying marked above the ST poc at 2347 (dashed line) would be the first minor indication of strength. Overnight ES has printed as low as 2317.75 but as of one hour pre-open has recovered a little from there.
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 finished the week at 11.26. On 1st March the ratio reached 14.02, the second highest ratio in the database.
Market Charts: Nyse remained negative. Nasdaq and R2000 turned negative. UK turned neutral.
Stocks>50dyma numbers: Nyse 43%, Nasdaq 42%, R2000 36%. Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – the major poc is at 119.00 and chart broke back above it last week to print in a strong price location. Futures indicate a higher open for TLT today. Key Chart.
Dollar Index: chart is currently printing its lowest level since November.
Gold: last week the chart rallied back above 115.69, the 1/2R off last year’s low which was stronger price location and held that level. Found Resistance at 119.0, the 1/2R off the July 16 high and stalled but is likely to open above that level today in a stronger price location.
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. The Support at 10.06 (1/2R off 2016 low) was reached last week and held. Time printed below that level would further weaken the price location.
GBPUSD: is today printing its highest level since early February.
EURUSD: chart is currently printing its highest level since November.
USDJPY: chart is currently printing its lowest level since November.
click graphic to enlarge
