Stock market report pre-open 1st June 2016 Chartprofit
Please read yesterday’s highlighted comments – these are still valid. Tuesday generated an overlapping, “outside” Value Area with a low at 2086 which was previously a 3 month poc. ES is currently in a strong price location and this higher range, 2085-2095 has not yet attracted Significant Selling.
First Level Support = 2063.50 (minor 1/2R off April high)
Second Level Support = 2054.50 (maj poc)
Third Level Support = 2041.00 (9mn poc)
Stocks>50dyma numbers: Nyse 62% (unch), Nasdaq 61% (from 60%), R2000 64% (from 62%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 3.97. 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: TLT has spent nine days printing below 130.77, the 8mn poc in a weak price location. Bulls would want the chart back above that level.
Dollar Index: Now printing above 94.79, the 2yr poc, in a stronger price location.
Gold: GLD – last week broke below 118.22, the major poc which put the chart in a weak price location. Has now stalled at 115.50 which was previously the major poc and also the April low. I am assuming this is still valid Support and therefore price below this level would be weaker price location.
Oil: last week futures printed the highest level since October.
EURUSD: last week broke below 1.1198, the 3yr poc Support which puts the chart in a eak price location. Currently prints just above 1.1084, the 1/2R off last year’s low – if this Suppoort is broken it would indicate further weakness.
