Stock market today 27th October 2016 – pre-open from Chartprofit
ES analysis: See previous comments. Tuesday’s session opened lower and recovered, generating a lower Value Area centred around 2133.00, the current 2mn poc. It’s been 23 days since I last marked Significant Buying or Selling which indicates a lack of directional commitment and ranging activity. Pre-open today ES is once again probing 2142.25, the 1/2R off August high. Price printing time above this level would be a positive but until that happens I am not interested in new longs especially with breadth and price momentum remaining unsupportive, see Pulse chart.
Resistance = 2154.00 (poc)
Support/Resistance today = 2142.25 (1/2R off Aug high)
Support = 2133.00 (2month poc)
Major poc Support = 2087.00
Key Charts/Levels: IWM – the 10mn poc migrated to 120.82. Wednesday’s close was below this level. QQQ – 116.97 = 4mn poc Support. Chart closed above that level on Tuesday.
Stocks>50dyma numbers: Nyse 35% (from 37%), Nasdaq 38% (from 41%), R2000 35% (from 39%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 6.77. Monday’s ratio 5.92 was 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. There is Support at 130.77, the 3year poc. Futures indicate a lower open for TLT today.
Dollar Index: on Tuesday printed 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). Cash indicates a higher open for GLD today.
Oil: USO – USO has been printing above 10.78, the 18mn poc, for three weeks and as long as it holds thta level it is in a strong price location.
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 on Tuesday printed its lowest level since March.
