Stock market today 16th November 2016 – pre-open from Chartprofit
Please read previous comments. On Tuesday I marked Aggressive Buying (green-at-top). The entire Value Area was generated above 2159.50 (6mn poc). ES has to hold this level to maintain a strong price location. Momentum and breadth have improved on the Pulse chart. See Rydex data below.
First Level Support = 2159.50 (now 6month poc)
Second Level Support = 2106.50 (1/2R off August high)
Major poc = 2087.00
Stocks>50dyma numbers: Nyse 60% (from 57%), Nasdaq 64% (from 62%), R2000 72% (from 70%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was sharply higher at 7.59 (from 5.90). This will be monitored. 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: is today testing 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 fell sharply from there. On Tuesday Chart closed back above 10.06, the 1/2R off the Feb low in a stronger 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. Has today printed its lowest level since December.
click graphic to enlarge
