Technical analysis – Market pre-open 28th March 2016
See previous comments. ES has failed to print time above the mid 2040s area of price, see previous comments but until Significant Selling (red) is marked I assume Buyers are still in control and as long as ES holds above 1990 it is in a strong price location in the LT.
Dayframe: a minor (10day) poc has emerged at 2033.00 and price relative to that level can be used as a guide for ST strength/weakness at the start of the week. Two hours pre-open today ES prints just above that level.
First Level Support = 1990 (36day poc)
Second Level Support = 1956.90 (1/2R off last year’s high)
Major Support (major) = ES 1870 (previous maj poc)
Market Charts: All major Market Charts remained positive.
Stocks>50dyma numbers: Nyse 86%, Nasdaq 72%, R2000 75%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 4.83. The ratio is still low compared to levels seen last year but this is a 47 day high. On 02/19 the ratio fell to 2.64 which was the lowest since November 2012..
Supporting Charts:
Bonds: TLT – has held the Support at 126.70 (1/2R level), and ended the week above 128.43, the 3mn poc, in a strong price location.
Dollar Index: Printing below the 97.40 poc in a weak price location but rallied last week.
Gold: GLD was down last week but held above 115.50, the major poc. Price below this level would be weaker price location.
Oil: USO lower last week. First Level Support is at 9.23, 1/2R off the February low.
EURUSD: found Support recently at 1.1085, the 1/2R off last year’s low and although lower last week is currently printing above that level.
