Stock Market 29th August 2016 – pre-open from Chartprofit
emini analysis – During Friday’s session an early, rejected probe above 2177.50 was followed by a swift decline to briefly test the 2158.50 poc, see Friday’s highlighted comments. The Value Area was the second generated entirely below the 2177.50 poc which is weak price location in the ST. In the longer timeframe price below 2158.50 would be a real concern.
First Level Resistance = 2177.50
First Level Support = 2158.50
Stocks>50dyma numbers: Nyse 62%, Nasdaq 67%, R2000 67%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 7.9, a seven month high for the ratio.
Supporting Charts:
Bonds: TLT – on Friday there was an early, rejected probe above 140.30, the min 1/2R off the July high and TLT finished the week below 139.00, the 4mn poc in a weak price location.
Dollar Index: The 1/2R off the May low comes in at 94.76 which is the same level as the 4mn poc. Following Friday’s rally UDX is currently printing above this level in a stronger price location.
Gold: GLD ended the week below 128.13, the minor 1/2R off the July high in a weak 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 – sold off earlier in the week but has so far held 10.78, the 18mn poc. Chart needs to hold this level to maintain a strong price location.
EURUSD: chart sold off at the end of the week but is currently holding 1.1170, the 4yr poc.
click graphic to enlarge
