emini analysis 28th December 2016 – pre-open from Chartprofit
Dayframe: All the price action over the last eight days has taken place within the range of Wednesday 12/14. The 3month poc is now at 2259 and price above that level is strong location. On the Pulse Chart there is a clear negative divergence on the minor timeframe between price and momentum although momentum has ticked up. Significant Buying (green) marked above ES 2259.00 would be a positive.
First Level Support = 2259 (3 month poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio was higher again at 11.66 which is the highest reading since early June 2015.
Market Charts: All major market charts are positive.
Stocks>50dyma numbers: Nyse 73%, Nasdaq 68%, R2000 78%, UK 68%. Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – 12/14 TLT printed its lowest level since July 2015 but has so far held the major poc Support at 117.15. Time below this level would be worrying.
Dollar Index: 12/20 printed its highest level since April 2003. Is today printing close to that level.
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. 12/15 printed its lowest level since January.
Oil: USO – since the start of December USO has been printing above 10.78, the maj poc, in a strong price location. On 12/12 chart printed its highest level since late June.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. 12/20 printed its lowest level since early 2003.
click graphic to enlarge
