emini futures 7th January 2018 – pre-open from Chartprofit
I have been writing that >>Sentiment measures have been indicating levels of bearishness consistent with those often seen at market lows but after a sell-off like this I need to see more evidence that Bulls are regaining control<< Friday’s price action represented some minor positives. On Thursday the 1month poc migrated to 2478. Early in Friday’s session ES found Support at this level (see chart) and rallied strongly to a ten day high above 2500. Aggressive Buying (green-at-top) was marked for the first time since November.
Other charts may offer clues over the next few days: can Gold (GLD) and Bonds (TLT) hold above their pocs? coincidentally both at 121. Also German DAX is currently printing back above 10672, its 4 yr poc and UK FTSE 100 is today probing the 6820 maj poc Resistance.
Stocks>50dyma numbers: Nyse 20%, Nasdaq 24%, R2000 22%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher on Friday; up from 5.64 on Thursday, the lowest since July 2016. The high was 27.5 in early September.
Bonds – TLT: using 30minute data the major migrated lower from 121.0 to 118.84 earlier in the month. With time at 121.0 it could easily migrate back to that level. Price is currently printing above 121 in a stronger postion.
Dollar Index: as long as DXY prints above 94.80, the major poc, it is in a strong LT price location.
Gold: GLD – last week GLD printed its highest level since June and closed on Friday above the 121.00 Resistance, the major poc in a stronger position.
Oil: USO – on 12/07 chart found Resistance at 11.41, the Major Poc and fell sharply lower from there. This is an important chart. Equity Bulls as well would want to see a recovery back above 11.41.
GBPUSD: GBPUSD had bounced again from a second test of 1.2481 (30mn poc). Potentially a double-bottom here if that Support holds.
EURUSD: chart is still having a problem printing above 1.1450, the 1/2R, but has been Supported by the 1.1310 level (previously a major controlling price).
USDJPY: the major controlling price recently migrated to 112.60. Chart is currently printing below that level in a weak price location.
