Stock market report 1st August 2016 – pre-open from Chartprofit
ES analysis: From mid-July ES ranged for eleven days between 2150 and 2170. Monday through Thursday last week almost all price action took place above 2156, the minor poc. On Friday that poc (now 2month) migrated to 2160 and ES needs to hold that level to remain in a strong price location.
First Level Support = 2160.50 (2mn poc)
Second Level Support = 2087.00 (major poc)
Market Charts: All major market charts remain positive.
Stocks>50dyma numbers: Nyse 73%, Nasdaq 69%, R2000 72%, UK 69%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 6.00 which is a six month high.
Supporting Charts:
Bonds: On Friday TLT closed in a strong price location above 140.30, the min 1/2R off the July high. More important Support is at 130.77 (3year poc). Futures indicate a lower open today.
Dollar Index: printing below 96.21, the 1/2R off the December high in a weaker price location but has held the important Support at 95.25 (2yr poc).
Gold: On Friday GLD closed in a strong price location above 128.13, the minor 1/2R off the July high. In the LT as long as the chart holds above 118.22 (maj poc) it is in a strong price location in the LT.
Oil: USO – the 9mn poc is at 10.78 and the 1/2R off February’s low is at 10.06. USO finished the week below both levels in a weak price location.
EURUSD: Currently printing below 1.1313, the 4yr poc but above 1.11, the 1/2R off last year’s low.
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