Stock Market 25th August 2016 – pre-open from Chartprofit
On Wednesday I marked Aggressive Selling (dayframe) for the first time in 24 days. In the longer time frame this is Reactive Selling – the Value Area was generated entirely above the 2177.50 poc. Time spent below that level would be a negative especially if Significant Selling is marked. New long trades are now eliminated for me, at least until Siginificant Buying (green) is marked again. In the longer timeframe price below 2158.50 would be a real concern.
First Level S/R = 2177.50
Second Level Support = 2158.50
Stocks>50dyma numbers: Nyse 65% (from 70%), Nasdaq 69% (from 72%), R2000 68% (from 72%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.30 (from 6.44). Down from 7.74 on 08/08 which was a seven month high for the ratio.
Supporting Charts:
Bonds: TLT closed below 140.30, the min 1/2R off the July high but above 139.00, the 4mn poc. Price printing time back above 140.30 would be a positive.
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 very close to this level.
Gold: On Monday and Tuesday GLD closed below 128.13, the minor 1/2R off the July high in a weak price location. On Wednesday it fell sharply to close at a 21day low. In the LT as long as the chart holds above 118.22 (maj poc) it is in a strong price location.
Oil: USO – sold off early in the week but has so far held 10.78 (just), the 18mn poc. Chart needs to hold this level to maintain a strong price location.
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
