emini analysis 4th January 2017 – pre-open from Chartprofit
See yesterday’s highlighted comments. First Level Resistance at 2259 came into play during Tuesday’s session. An early probe into that poc was rejected and ES sold off, but recovered, see chart. Pre-open today ES is printing close to that level again. This level could be Support or Resistance duriung today’s session. Bulls would want to see time printed above that level.
Momentum (PriceOsc) on the SPY chart, although positive (trend up) is still falling. This indicator has a strong tendency to return to the zero level once it has turned down from an elevated level, see Pulse Chart. See also Sentiment, below.
Support/Resistance today? = 2259.00 (3 month poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 11.83, the highest ratio since June 2015.
Stocks>50dyma numbers: Nyse 76% (from 70%), Nasdaq 68% (from 65%), R2000 79% (from 76%). Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – On 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: On Tuesday printed its highest level since April 2003.
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. On 12/15 chart printed its lowest level since last January.
Oil: USO – since the start of December USO has been printing above 10.78, the maj poc, in a strong price location. On Tuesday 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. On Tuesday printed its lowest level since early 2003.
click graphic to enlarge
