Technical analysis – Market pre-open 12th April 2016
On Monday there was an early rally to the Resistance at 2057.00, the minor poc, see yesterday’s highlighted comments. ES did not manage to print any time above that level and sold off to close the session back below 2041.00., 2mn poc and 30 minutes pre-open is printing at that price. 2041.00 could be indtraday Support or Resistance today which may give a clue re ST direction.
Resistance = 2057.00 (minor poc)
First Level S/R= 2041.00 (2mn poc)
Support = 1956.90 (1/2R off last year’s high)
Key Charts: On Monday and again today the German DAX index has rallied to test 9740, the major poc, having broken below that level last week. Price printing above this level would be a positive.
Stocks>50dyma numbers: Nyse 80% (from 79%), Nasdaq 69% (unch), R2000 70% (unch) . Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 4.94. Last Wednesday’s ratio at 5.11 was a 57day high. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: TLT closed above 128.43, the 3mn poc, in a strong price location. IEF closed above 110.38, the 4mn poc, in a strong price location.
Dollar Index: printing below the 97.40 poc in a weak price location and has today printed its lowest level since August.
Gold: GLD – On Friday found Support at the previous poc at 115.50. Price below this level would suggest weakness but is currently in a strong price location above 118.05, the major poc.
Oil: USO last week found Support at 9.00, the 6mn poc and has rallied strongly from there.
EURUSD: found Support recently at 1.1085, the 1/2R off last year’s low and has rallied from there. Earlier today printed its highest level since October but is currently off that level.
