emini futures 5th January 2017 – pre-open from Chartprofit
Value Areas this week for the emini futures have all been generated entirely above 2688, the minor (2mn) poc, see Tuesday’s comments. Aggressive dayframe Buying (green-at-top) was marked on Tuesday and Wednesday. First sign of weakness would now be Significant Selling (red) marked below 2688.
First Level Support = 2688.00 (2mn poc)
Second Level Support = 2580 (4mn poc)
Stocks>50dyma numbers: Nyse 69% (unch), Nasdaq 64% (from 62%), R2000 6% (from 55%). Numbers >50 are supportive.
Sentiment: My (new) version of the Rydex Assets Ratio has fallen back to 17.43 having reached 22.27 on Thursday, the highest ratio in the database.
Bonds: TLT – on a 30 minute basis the 15 month poc has just migrated to 126.66. If price remains below this level it could be a negative. I would much prefer TLT printing above this level if I was looking at the long side.
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 on Tuesday 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. On Thursday cash gold 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. This week USO has reached its highest level since June 2016.
GBPUSD: currently printing above 1.3234 (1/2R) in a strong price location.
EURUSD: in December chart tested the 1 year poc Support at 1.1755 and held. Is up from there. This week the chart has approached (but not exceeded) the September high.
USDJPY: two failed probes into the 113.70 maj poc Resistance in December.
