Stock market today 15th November 2016 – pre-open from Chartprofit
On Thursday last week I wrote that the poc of the current distribution (which began in June) had migrated to 2159.50 and this suggeted completion and that a new directional move may well be about to begin. See highlighted comments. Since then price has spent more time at that level building the poc which it often does at the end of a distribution. I’m thinking that Significant Buying (green) now marked above that level or Selling (red) marked below will mark the start of the next move.
SPY momentum is now positive, see Pulse chart.
Support/Resistance = 2159.50 (now 6month poc)
Second Level Support = 2106.50 (1/2R off August high)
Major poc = 2087.00
Stocks>50dyma numbers: Nyse 57% (from 55%), Nasdaq 62% (from 61%), R2000 70% (from 69%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 5.90 (from 6.77). On 08/26 the ratio reached 7.90, the highest ratio for the last ten months.
Supporting Charts
Bonds: TLT – early last week TLT closed below 130.77, the 3year poc and declined heavily for the rest of the week. On Monday chart reached its lowest level since January, closing at 121.31. The major poc Support is at 117.15.
Dollar Index: printing close to the December ’15 high.
Gold: on Friday broke below 119.84, major poc Support and fell sharply. The next Support is at 115.69, 1/2R off last year’s low. This has been reached – Monday’s low was 115.49.
Oil: USO – USO broke below 10.78, the 18mn poc, at the end of October and has fallen sharply from there. Chart is now printing below 10.06, the 1/2R off the Feb low in a weak price location. This is a Key Chart and a Key Level.
EURUSD: in early October chart broke below 1.1165, the 4yr poc and has been in a weak price location since then. On Monday printed its lowest level since December.
click graphic to enlarge
