Stock market today 6th December 2016 – pre-open from Chartprofit
I wrote yesterday >>2200. Price relative to that level is worth monitoring at the start of this week as a clue to ST strength/weakness<<. Monday’s Value Area was generated above that level and see intraday Support on the chart. Also, Tuesday printed above Thursday’s high negating the ST negative implications of that day’s Aggressive Selling.
In the ST as long as ES holds above 2200 it is in a strong price location and Significant Buying marked above that level would indicate higher.
First Level Support/Resistance = 2200 (5week poc)
First Level Support = 2159.50 (6month poc)
Stocks>50dyma numbers: Nyse 68% (from 65%), Nasdaq 66% (from 65%), R2000 76% (from 71%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly higher at 8.48, an eleven month high. The ratio at an 11 month high is always worth noting as a warning but it seems that Bear fund assets AND Bull fund assets both fell sharply yesterday and that’s rare. Bull fund assets falling 19% in one day would usually be a positive.
Supporting Charts
Bonds: TLT – last week the chart printed as low as 117.64, its lowest level since December. The major poc Support is a little lower at 117.15.
Dollar Index: 11/24 chart reached its highest level since April 2003. On Monday printed a twelve day low.
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. Price back above that level would be the first positive.
Oil: USO – is now printing back above 10.78, the maj poc in a strong price location. This is a Key Chart and a Key level.
EURUSD: in early October chart broke below 1.1165, the 4yr poc, and has been in a weak price location since then. On Monday chart printed as low as 1.0503, its lowest level since March 2015 and then reversed higher to print a fourteen day high.
click graphic to enlarge
