emini analysis 3rd August 2016 pre-open from Chartprofit
Early in Tuesday’s session ES rejected price above the 2mn poc (2160.50) and sold off. The entire Value Area was printed below that level and this puts the chart in a ST weak price location. As long as chart hold the Major poc at 2087 it is in a strong price location in the LT. Even though Effective Selling has not yet been marked I am cautious here. Before considering new longs I would want to see either: price printing time back above 2160.50 or a rejected test of 2087 followed by Significant Buying (green) being marked.
Resistance = 2160.50 (2mn poc)
Support = 2087.00 (major poc)
Stocks>50dyma numbers: Nyse 62% (from 68%), Nasdaq 62% (from 69%), R2000 63% (from 70%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 6.05 which is a six month high.
Supporting Charts:
Bonds: On Monday TLT closed in a weaker price location below 140.30, the min 1/2R off the July high and was lower on Tuesday. More important Support is at 130.77 (3year poc).
Dollar Index: is currently testing the important Support at 95.25 (2yr poc)
Gold: On Monday GLD closed in a strong price location above 128.13, the minor 1/2R off the July high and was higher on Tuesday. In the LT as long as the chart holds above 118.22 (maj poc) it is in a strong price location.
Oil: USO – the 9mn poc is at 10.78 and the 1/2R off February’s low is at 10.06. USO closed below both levels on Tuesday. Weak price location.
EURUSD: Currently printing below 1.1313, the 4yr poc, but above 1.11, the 1/2R off last year’s low.
click chart to enlarge
