Stock Market 22nd August – pre-open report from Chartprofit
emini analysis: The minor poc (25 day) is at 2177.50 and overnight this minor Support has been tested. Price relative to that level will be useful to monitor at the start of this week as a guide to ST strength/weakness. In the longer timeframe as long as ES holds 2158.50 it is in a strong price location. We are looking for a sign of conviction from either the Significant Buyers or Sellers – neither has been marked for 21 days which is an unusually long time.
First Level Support = 2158.50 (3mn poc)
Second Level Support = 2087.00 (major poc)
Market Charts: All major Market Charts remained positive.
Stocks>50dyma numbers: Nyse 69%, Nasdaq 69%, R2000 68%, UK Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.36. Down from 7.74 on 08/08 which was a seven month high for the ratio.
Supporting Charts:
Bonds: TLT closed in a weak price location below 140.30, the min 1/2R off the July high. Price printing time back above that level would be a positive. More important Support is at 130.77 (3year poc). Futures indicate a higher open today.
Dollar Index: The 1/2R off the May low comes in at 94.76 which is the same level as the 4mn poc. Currently the chart is printing just below this level.
Gold: On Friday GLD closed just below 128.13, the minor 1/2R off the July high. Chart needs to print above this level to regain a ST strong price location. In the LT as long as the chart holds above 118.22 (maj poc) it is in a strong price location.
Oil: USO – closed on Friday above 10.78, the 18mn poc, in a strong price location. Crude Futures indicate a lower open today.
EURUSD: last week the 4yr poc migrated to 1.1170 and currently the chart is printing above that level in a strong price location.
click graphic to enlarge
