Stock market today 20th October 2016 – pre-open from Chartprofit
ES analysis: ES responded well to our levels on Wednesday. The session low came in at the minor (10day) poc and the high at our First Level Resistance, see previous comments. I have not yet marked Significant Selling but at current levels I am not looking at the long side unless ES can print time above 2142.25. Pre-open today ES is printing down from that level.
Second Level Resistance = 2154.00 (6 wk poc)
First Level Resistance = 2142.25 (1/2R off Aug high)
First Level Support = 2132.50 (minor poc)
Major poc Support = 2087.00
Key Charts/Levels: IWM 122.65 = 5mn poc. Chart is printing below that level in a weak price location. QQQ 116.97 = 4mn poc Support. Chart closed above that level on Wednesday.
Momentum (PriceOsc) for all four stock index ETFS is negative and heading lower.
Stocks>50dyma numbers: Nyse 42% (from 37%), Nasdaq 43% (from 41%), R2000 42% (from 38%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 6.57 (from 7.31). The ratio reached 7.90 on 08/26, a seven month high. On Tuesday Rydex Bull fund assets that I track, reached their highest level since 6th January, but on Wednesday were sharply lower.
Supporting Charts:
Bonds: TLT – At the end of September there was a rejected probe of the 4mn poc Resistance at 139.00. Chart is sharply lower from there and printed its lowest level since June 2nd on Friday.
Dollar Index: on Monday printed its highest level since March 10th.
Gold: last month GLD tested 127.85, the 1/2R Resistance off the July high. This was rejected and chart declined sharply from there but has so far held the major poc Support at 118.22 (maj poc).
Oil: USO – USO has been printing above 10.78, the 18mn poc, for two weeks and on Wednesday printed its highest level since late June. Futures indicate a lower open today.
EURUSD: last week the chart broke below the 1.1165 (4yr poc) and below 1.1083 (maj 1/2R). Currently in a weak price location and today printed its lowest level since July.
