emini future 11th December 2018 – pre-open from Chartprofit
ES remains below 2718, the maj poc, in a weak LT price location but on Monday there was a rejected test below the October low and the rally has continued through pre-open today. The Pulse chart needs to improve but a rejected test of a previous low will often set up a rally. Elsewhere there are some positives, as in FTSE and DAX charts – these to monitor:
FTSE: since Thursday had been printing below 6820, the major poc, in a weak position. Today it has rallied back above that level.
DAX: At the end of November I suggested that the 4year poc may be tested. Yesterday that level was tested but today DAX has rallied back above it.
ETFs Maj POC levels: SPY 271.7, IWM 153.5
Stocks>50dyma numbers: Nyse 24% (from 26%), Nasdaq 22% (from 21%), R2000 22% (from 24%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 12.48, from 13.24. Would be a real positive here to see the ratio fall here especially if the market rallies. On 11/05 the ratio fell to 8.15 which was the lowest ratio in more than a year. The peak reading is 27.55 recorded 09/07 which equalled the highest ratio in the database.
Bonds: TLT – Last week TLT probed the First Level Resistance at 118.50, the 6mn poc, and closed above it on Monday. Price printing time above that poc would be a stronger price location. There is more important Resistance at 121.00, the major poc.
Dollar Index: 11/12 DXY printed its highest level since June 2017. The major poc is at 94.80 and chart printed a higher low at that Support in November – it remains in a strong LT price location above that level.
Gold: GLD – The major poc is at 121.00 and the chart remains in a LT weak position below that level although on Friday GLD printed its highest level since July.
Oil: USO – on 11/23 chart broke below 11.41, the Major Poc. Bulls would want to see that level recovered. On Friday it was probed but fell back on Monday.
GBPUSD: remains in a weak LT location below 1.3200, the major poc. On Monday printed its lowest level since June 2017.
EURUSD: 11/12 printed its lowest level since June 2017, breaking the August low. Has bounced but remains in a weak price location if it prints below 1.1450, the 1/2R off 2017 low.
USDJPY: the major poc is at 111.30. Chart is printing above that level and looks to have formed a higher low at that poc.
