emini futures 2nd January 2018 – pre-open from Chartprofit
On Friday the minor (2mn) poc for the S&P emini futures migrated to 2686. This is now First Level Resistance and price relative to this level could be a guide to ST strength/weakness. This leaves the next price/time level of importance at 2580, and this is First Level Support. First sign of weakness would now be Significant Selling (red) marked below 2686. Also see note re Sentiment, below, and the current reading for the Rydex ratio.
First Level Resistance = 2686.00 (2mn poc)
First Level Support = 2580 (4mn poc)
Market Charts: Nyse stayed positive; Nasdaq stayed neutral; R2000 turned negative.
Stocks>50dyma numbers: Nyse 65%, Nasdaq 53%, R2000 49%. Numbers >50 are supportive.
Sentiment: I have changed the list of funds included in the ratio and recalculated it back to 2006. My (new) version of the Rydex Assets Ratio ended the week at 21.46 having reached 22.27 on Thursday, the highest ratio in the database.
Bonds: TLT – last week tested 124.40, the 10mn poc Support and has rallied back from there.
Dollar Index: in early July chart broke below 95.50, the major poc = weak LT price location. Last week broke below the 1/2R off the Sep low and has today printed a three month low.
Gold: The major poc recently migrated back up to 121.00 and currently chart prints above this level in a strong price location. Cash gold has today printed a three month high.
Oil: USO – the major poc recently migrated higher to 11.41. The migration of a maj poc often preceeds a directional move. Last week USO reached its highest level since June 2016.
GBPUSD: currently printing above 1.3234 (1/2R) in a strong price location.
EURUSD: earlier this month chart tested the 1 year poc Support at 1.1755 and held. Is up from there and is today approaching the September high.
USDJPY: two failed probes into the 113.70 maj poc Resistance in December and chart is down from there.
