Stock market today 19th December 2016 – pre-open from Chartprofit
See previous comments. All the price action on Thursday and Friday took place within Wednesday’s range. Wednesday’s red-at-bottom low has yet to be tested and 80% of the time Aggressive selling lows are tested within two days. If Wednesday’s high at 2272 is exceeded it would negate any short-term negative implications of that red-at-bottom low.
Day frame: more time was spent at 2252.50 on Friday and this is a minor (11day) poc. Price relative to this level would be useful to monitor early this week re minor strength/weakness. Also, see Pulse chart – there is a clear negative divergence on the minor timeframe between price and momentum which ticked lower on Friday.
First Level Support = 2200 (minor poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio ended the week at 9.50. Thursday’s ratio at 9.57 was a sixteen month high.
Market Charts: All U.S. Market charts are positive; UK is neutral.
Stocks>50dyma numbers: Nyse 74%, Nasdaq 70%, R2000 80%, UK 60% Numbers >50 are supportive.
Supporting Charts
Bonds: TLT – last week TLT printed its lowest level since July 2015 but has so far held the major poc Support at 117.15. Time below this level would be worrying.
Dollar Index: on Thursday printed its highest level since April 2003.
Gold: 11/23 GLD broke below 115.69, the 1/2R off last year’s low which put the chart in a weak price location. On Thursday printed its lowest level since January.
Oil: USO – since start of December chart has been printing above 10.78, the maj poc in a strong price location. Last Monday printed its highest level since late June.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. On Thursday printed its lowest level since early 2003.
