Stock market report pre-open 25th July 2016 Chartprofit
Friday’s session generated another Value Area above the minor poc at 2156, see Friday’s highlighted comments. Momentum and Breadth are positive and as long as ES holds above 2156 it is in a strong price location. The market looks stretched now and time printed below 2156 would be a concern and suggest ST weakness.
First Level Support = 2156.00 (minor poc)
Second Level Support = 2087.00 (major poc)
Market Charts: All major market charts remain positive.
Stocks>50dyma numbers: Nyse 78%, Nasdaq 73%, R2000 78%, UK 59%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 4.80. On 07/14 the ratio reached 5.97 which was a six month high.
Supporting Charts:
Bonds: TLT hit a new high on Friday 07/08but lower from there. First Level Support is at 130.77 (3year poc).
Dollar Index: printing above 96.21, the 1/2R off the December high in a strong price location.
Gold: GLD printed a two year high in the week ending 07/08. Lower from there but as long as it holds above 118.22 (maj poc) it is in a strong price location in the LT.
Oil: USO – the 9mn poc migrated back down to 10.78 recently. USO finished the week below that level in a weak price location.
EURUSD: printing below 1.1313, the 4yr poc and closed the week below 1.11, the 1/2R off last year’s low in a weak price location.
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