Stock market today 25th October 2016 – pre-open from Chartprofit
ES analysis: see previous, highlighted, comments. Monday’s session generated a Value Area entirely above the 2142.50 Resistance. If ES can hold above this level today as well it will be the first minor sign of strength. Sighnificant Buying (green) marked above this level would be a real positive. Breadth still needs to improve, see below, as does price momentum, see Pulse Chart.
Resistance = 2154.00 (poc)
Support/Resistance today= 2142.25 (1/2R off Aug high)
First Level Support = 2133.00 (14day poc)
Major poc Support = 2087.00
Key Charts/Levels: IWM 122.65 = 5mn poc. Monday’s high was 122.61. QQQ 116.97 = 4mn poc Support. Chart closed well above that level on Friday.
Stocks>50dyma numbers: Nyse 41% (from 38%), Nasdaq 45% (from 41%), R2000 45% (from 39%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was lower at 5.92, a 59 day low. The ratio reached 7.90 on 08/26, a seven month high.
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.
Dollar Index: is today printing its highest level since early February.
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 119.84 (maj poc).
Oil: USO – USO has been printing above 10.78, the 18mn poc, for three weeks and on Wednesday last week printed its highest level since late June.
EURUSD: 10/10 the chart broke below the 1.1165 (4yr poc) and below 1.1083 (maj 1/2R) the following day. Remains in a weak price location and has today printed its lowest level since March.
