emini SP500 7th September 2016 – pre-open from Chartprofit
ES analysis: Strictly applying my rules I marked Aggressive Buying (green-at-top) for the first time in two months. As suspected the 4mn poc migrated higher 2180.50, see yesterday’s comments. Price relative to this level should be monitored as a guide to ST strength and time below this level would put the ST strength implicated by the Buying imbalance in doubt.
First Level Support/Resistance = 2180.50 (4mn poc)
Major poc Support = 2087.00
Stocks>50dyma numbers: Nyse 64%, Nasdaq 68%, R2000 70%, UK 83%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 7.23. The ratio reached 7.9 on 08/26, a seven month high.
Supporting Charts:
Bonds: TLT – closed on Tuesday back above 139.00, the 4mn poc. Next Resistnce is 140.34 which is the 1/2R off the July high. Chart printing time above that level would put it in a strong price location.
Dollar Index: last week probed the Resistance at 96.21 which is the 1/2R off last year’s high and fell from there to test the Support at 94.76 (2yr poc) which has held so far.
Gold: GLD closed on Thursday last week at its lowest level since June but has rallied back this week and closed on Tuesday above 127.85 (1/2R off July high) in a strong price location. The major poc Support is at 118.22 (maj poc) – there is a possibility that poc could migrate higher – I am watching for that.
Oil: USO – last week USO broke below 10.78, the 18mn poc and is now in a weaker price location. However it has found Support at 10.07, the 1/2R off this year’s low. Price printing time below this level would indicate further weakness.
EURUSD: recently found Support at 1.1139, the 4yr poc and has rallied. There is also Support lower at 1.1083, 1/2R of last year’s low.
