Stock market today 28th October 2016 – pre-open from Chartprofit
ES analysis: See previous comments. Wednesday’s session opened, touched 2124.25 (1/2R off Aug high) and immediately sold off, see chart. This is a weak pattern. An overlapping Value Area was generated with most time spent close to 2133 once again. Price relative to this level can be used as a guide to short term strength/weakness. Pre-open ES is printing below this level in a weak price location.
With the Pulse Chart looking weak in terms of breadth and price momentum I would need ES printing time above 2142.25 before considering the long side. There is Support at 2087, the major poc, should price fall again.
Second Level Resistance = 2142.25 (1/2R off Aug high)
First Level Resistance= 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 120.82, the 10mn poc. Weak price location. QQQ – 116.97 = 4mn poc Support. Chart closed above that level on Wednesday.
Stocks>50dyma numbers: Nyse 31% (from 35%), Nasdaq 33% (from 38%), R2000 31% (from 35%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 6.80. Monday’s ratio 5.92 was a 59 day low. The ratio reached 7.90 on 08/26, a seven month high.
Supporting Charts
see today’s video
click graphic to enlarge
