emini analysis 8th December 2016 – pre-open frpm Chartprofit
ES found Support earlier in the week at 2200, the 5week poc, and held that strong price location. On Wednesday I market Aggressive Buying as ES auctioned strongly higher. As long as chart ES holds above 2200 it is in a strong price location.
First Level Support = 2200 (5week poc)
Second Level Support = 2159.50 (6month poc)
Stocks>50dyma numbers: Nyse 74% (from 70%), Nasdaq 70% (from 68%), R2000 80% (from 79%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.46 (from 7.94). Down from Monday’s ratio at 8.48 which was an eleven month high. I wrote on Tuesday “The ratio at an 11 month high is always worth noting as a warning but it seems that Bear fund assets AND Bull fund assets both fell sharply yesterday and that’s rare. Bull fund assets falling 19% in one day would usually be a positive.”
Supporting Charts
Bonds: TLT – last week the chart printed as low as 117.64, its lowest level since December. The major poc Support is a little lower at 117.15. Futures indicate a lower open for TLT today.
Dollar Index: 11/24 chart reached its highest level since April 2003. Has today printed an eighteen day low.
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. Price back above that level would be the first positive.
Oil: USO – is now printing back above 10.78, the maj poc in a strong price location. This is a Key Chart and a Key level.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. On Monday chart printed as low as 1.0503, its lowest level since March 2015 and then reversed higher.
click to enlarge graphic
