Chartprofit pre-open Stock market report 18th July 2016
ES (emini S&P 500 future) generated a lower/overlapping Value Area on Friday. Every day last week the intraday bias numbers indicated that Sellers were most active and yet their activity so far has been ineffective in the ST. See Friday’s, highlighted, comments on the graphic. Until Significant, Effective Selling (red) is marked I will assume that the Buyers are still in control of the dayframe. On Friday 8th I wrote that “Unless Selling (red) is marked soon Buyers will look for them higher”. Significant Sellers haven’t been found yet. Minor price distributiuon extremes around 2175 indicate a probe up to this level may draw them out.
First Level Support = 2087.00 (major poc)
Second Level Support = 2041.00 (poc)
Stocks>50dyma numbers: Nyse 79%, Nasdaq 74%, R2000 80%, UK . Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 5.88. Thursday’s ratio at 5.97 was a six month high. Bear fund assets fell to a seven month low last week.
Supporting Charts:
Bonds: having hit a new high on Friday 07/08, TLT closed sharply lower last week.
Dollar Index: is today printing back above 96.21, the 1/2R off the December high in a stronger price location.
Gold: GLD printed a two year high in the week ending 07/08. Last week was lower but as long as chart holds above 118.22 (maj poic) it is in a strong price location in the LT.
Oil: USO – the 9mn poc migrated back down to 10.78 last week and USO closed above that level on Friday. Chart must hold this level to maintain a strong price location.
EURUSD: printing below 1.1313, the 4yr poc. And currently printing just below 1.11, the 1/2R off last year’s low. Weak price location.
click graphic to enlarge
