Stock market 6th September 2016 – pre-open from Chartprofit
ES analysis: following Thursday’s rejected test of 2158.50 (at that time the 4mn poc) ES rallied on Friday. Time was printed at 2180 and ES prints close to that level pre-open today. It is possible the 4mn could migrate again, up to this level and I am monitoring this closely. In any case, as long as price holds above 2167 it is in a strong price location.
First Level Support = 2167.00 (4mn poc)
Major poc Support = 2087.00
Market Charts: all major Market Charts remained positive.
Stocks>50dyma numbers: Nyse 64%, Nasdaq 68%, R2000 70%, UK 83%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 7.40. Previous week the ratio reached 7.9, a seven month high.
Supporting Charts:
Bonds: TLT – closed on Friday below 139.00, the 4mn poc, in a weak price location. Chart needs to recover back above this level to stay in a strong position.
Dollar Index: last week probed the Resistance at 96.21 which is the 1/2R off last year’s high and is yet to print time above it. There is Support at 94.76 which is the 4mn poc.
Gold: GLD closed on Thursday last week at its lowest level since June. In the LT as long as the chart holds above 118.22 (maj poc) it is in a strong price location. 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: currently printing just above 1.1139, the 4yr poc. There is also Support lower at 1.1083, 1/2R of last year’s low.
click to enlarge graphic
