ES at new high – pre-open Wednesday 25th January
ES has broken out of its range to a new high. Breadth (see below) and Momentum have improved – see Pulse Chart. On Tuesday I marked Aggressive Buying (green-at-top) and a higher, wider Value Area was generated. As long as holds above 2265.00 it is in a strong price location.
First Level Support = 2265.00 (4 month poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio was higher at 10 (from 9.56). On 01/03 the ratio reached 11.83, the highest ratio since June 2015.
Stocks>50dyma numbers: Nyse 71% (from 61%), Nasdaq 59% (from 49%), R2000 60% (from 48%). Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – two weeks ago the major poc migrated higher to 121.60. TLT has closed below that level for five days. TLT must print back above that poc to maintain a strong price location.
Dollar Index: On 01/03 the index printed its highest level since April 2003. Off from there and has printed a 34 day low today.
Gold: 11/23 GLD broke below 115.69, the 1/2R off last year’s low which put the chart in a weak price location. This Resistance was probed last week but GLD closed below it on Tuesday. Cash gold also stalled at 1210.38, its equivalent 1/2R Resistance and is printing below that level today.
Oil: USO – since the start of December USO has been printing above 10.78, the maj poc. Chart must hold this Support to remain in a strong price location.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. On 01/03 printed its lowest level since early 2003. Printed a 33day high on Tuesday.
click to enlarge graphic
