Stock market today 20th December 2016 – pre-open from Chartprofit
All the price action over the last three days has taken place within Wednesday’s range, see Monday’s comments. The minor (17day) poc has migrated higher to 2258.50. Price relative to this level will provide a clue re minor strength/weakness. Thirty minutes pre-open ES was printing above 2265. Also, see Pulse chart – there is a clear negative divergence on the minor timeframe between price and momentum. Positives would be Momentum ticking up and Significant Buying (green) marked above 2258.50.
First Level Support = 2200 (minor poc)
Second Level Support = 2159.50 (6month poc)
Sentiment: My version of the Rydex Assets Ratio was higher again at 10.40 which is a seventeen month high. Largely due to Bear fund assets reaching an eighteen month low.
Stocks>50dyma numbers: Nyse 75% (from 74%), Nasdaq 71% (from 70%), R2000 82% (from 80%). 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: has today 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. Has today printed its lowest level since early 2003.
click graphic to enlarge
