Stock Market Report Thursday 16th June
Please note: I have shown the June contract on the graphic but I will be switching to the September contract. For now I want to show where the June contract is printing relative to important levels.
The high of Wednesday’s session was a probe up to the 2087 Resistance. A higher narrower Value Area was generated but below the 2087 poc. A late sell-off meant that ES finished the session close to the low. At current levels only Significant Buying (green) marked above 2087 could get me looking at the long side.
First Level Resistance = 2087.00 (maj poc)
Second Level Support = 2041.00 (poc)
Key Chart: IWM is printing below 115.35, its major poc, in a weak price location.
Stocks>50dyma numbers: Nyse 49.5% (from 48%), Nasdaq 49% (unch), R2000 56% (unch). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was higher at 4.86, a 30day high. SPX is lower this week with the ratio higher and as I wrote yesterday, this is not usually a bullish pattern in the ST. On 04/26 the ratio reached 5.27 which was the highest level since early January. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: On Wednesday TLT printed its highest level since early 2015.
Dollar Index: printing back above 93.95, the 1/2R off the May low in a stronger price location. Resistance is at 95.25, the 2yr poc.
Gold: cash Gold has today printed its highest level since August 2014
Oil: Last Wednesday USO printed its highest level since November but has sold-off sharply from there. Oil futures have printed an eighteen day low today.
EURUSD: printing below 1.1313, the 4yr poc, in a weaker price location.
There is Support just below 1.11 which is the 1/2R off last year’s low. Price below that level would suggest further weakness.
click to enlarge graphic
