Technical analysis – Market pre-open 18th April 2016
See previous comments. Buyers were active last week (green). ES made another new high for this rally on Thursday and as long as it holds above 2041.00 it is in a strong price location.
First Level Support = 2057.00 (minor poc)
Second Level Support = 2041.00 (2mn poc)
Market Charts: All major market charts remained positive.
Stocks>50dyma numbers: Nyse 88%, Nasdaq 79%, R2000 83%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 5.15. Last Wednesday’s ratio at 5.20 was a three month high. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012.
Supporting Charts:
Bonds: monitoring these level: TLT 128.43, the 3mn poc, and IEF 110.38, the 4mn poc. Charts must hold these levels to maintain a strong price location. TLT closed on Friday in a strong price location above its 1/2R off February high.
Dollar Index: printing below the 97.40 poc in a weak price location but up last week.
Gold: GLD – closed almost at 118.05, the major poc. GLD needs to hold this level to remain in a strong price location. Cash inidcates a higher open today.
Oil: USO earlier in the month found Support at 9.00, the 6mn poc and rallied from there. However, today futures indicate a sharply lower open following the Doah meeting on the weekend.
EURUSD: Last Tuesday printed its highest level since October but is lower from there. Needs to hold 1.1198 (3yr poc) to maintain a strong price location.
