Stock market today 21st December 2016 – pre-open from Chartprofit
Dayframe: All the price action over the last four days has taken place within last Wednesday’s range, see Monday’s comments. The minor (18day) poc has migrated higher (again) to 2266.50. Price relative to this level will provide a clue intraday re minor strength/weakness. One hour pre-open ES was printing close to this level. 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 2266.50.
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 10.85 which is a seventeen month high. Largely due to Bear fund assets reaching an eighteen month low.
Stocks>50dyma numbers: Nyse 76% (from 75%), Nasdaq 72% (from 71%), R2000 83% (from 82%). 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 Tuesday 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 the start of December USO has been printing above 10.78, the maj poc, in a strong price location. 12/12 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 Tuesday printed its lowest level since early 2003.
click graphic to enlarge
