emini futures 9th October 2018 – pre-open from Chartprofit
See Monday’s comments. Monday’s Value Area was overlapping Friday’s which tells us little. Buying marked above 2906 (2mn poc) would be the first new sign of strength here and until I see that I am assuming that the 2858.50 Support (3mn) is likely to be tested. Time printed below that level would indicate further weakness. The Pulse Chart also needs to improve. The Breadth Numbers need to get back above 50 as well, see below.
First Level Resistance = 2906.0
First Level Support = 2858.5
Stocks>50dyma numbers: Nyse 39% (from 37%), Nasdaq 27% (from 29%), R2000 27% (from 26%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 18.71. The peak reading is 27.55 recorded 09/07 which equalled the highest ratio in the database.
Bonds: TLT – has declined sharply over the last four weeks following its break below 121.00, the major poc and on Friday fell to its lowest level since Sep 2014.
Dollar Index: The major poc is at 94.80. The chart had been oscillating around that level for three months but is now printing above the poc in a stronger price location.
Gold: GLD – The major poc is at 121.00 and this Support was broken 06/19. Chart remains in a LT weak position.
Oil: USO – As long as chart holds above 12.79, the 12mn Support, it is in a LT strong price location – have been saying this for months now. If USO should retrace we need to watch for that poc migrating higher. Last week chart reached its highest level since October 2015.
GBPUSD: The major poc is at 1.3200. On 09/20 that Resistance was probed and rejected. Chart is still printing below that level.
EURUSD: On 08/15 the chart printed its lowest level since July 2017. There was a rally back from there to probe 1.1755, the 1year poc Resistance. This was rejected.
USDJPY: the major poc is at 111.30. Chart is printing above that level and last week reached its highest level since November.
