emini analysis 29th December 2016 – pre-open from Chartprofit
All the price action over the last nine days has taken place within the range of Wednesday 12/14. Yesterday’s price action was negative. I marked Aggressive Selling (red-at-bottom) below 2259 (3mn poc) and the Value Area was generated entirely below that level. Since pre-open Thursday 15th new longs have been eliminated for me, waiting for Significant Buying which hasn’t yet been marked, see previous highlighted comments.
The negative divergence on the minor timeframe between price and momentum appears to be playing out here and as we know the momentum indicator (PriceOsc) has a strong tendency to return to the zero level once it has turned down from an elevated level, see Pulse Chart. The Rydex Ratio has also been a concern recently, see below.
First Level Resistance = 2259.00 (3 month poc)
First Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio was higher again at 11.72 which is the highest reading since early June 2015.
Stocks>50dyma numbers: Nyse 69% (from 73%), Nasdaq 65% (from 68%), R2000 76% (from 78%). Numbers >50 are supportive.
Supporting Charts
see today’s video
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