emini report Wednesday 6th July
In last Thursday’s emini report I wrote that “The Resistance on this chart is now the major poc at 2087”. You can see on the chart that Friday’s (narrow) Value Area was printed above 2087 but this level has not been held this week. We could therefore be looking at a failed test above Resistance and as I wrote yesterday this may indicate a retest of 2041. Breadth numbers deteriorated yesterday, see below.
First Level Resistance = 2087.00 (major poc)
Second Level Support = 2041.00 (poc of current distribution)
Key Charts:
FTSE100 Futures stalled at the 6525 major poc and is today printing down from that level.
GBPUSD: the minor poc on this chart is at 1.3286 and GBPUSD is currently printing more than 2% below that level.
DAX Index: broke below 9660, its major poc, on Tuesday and is lower today. Weak location.
Stocks>50dyma numbers: Nyse 48% (from 57%), Nasdaq 44% (from 51%), R2000 46% (from 54%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 4.98 (from 4.36). The highest ratio since very early this year was reached on 04/26 at 5.27. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: TLT closed at a new high on Tuesday and futures indicate a higher open today.
Dollar Index: currently printing at 96.21, the 1/2R off the December high. Price above that level would be strong price location. Price below 95.25, the two year poc, would be weak price location.
Gold: GLD closed at a two year high on Tuesday. Cash indicates a higher open today.
Oil: USO – the 9mn poc migrated to 11.70 late last week. USO closed well below that level on Tuesday and futures indicate a lower open today.
EURUSD: printing below 1.1313, the 4yr poc. Price below 1.11 would be a weak price location and currently chart is printing at that level.
click graphic to enlarge
