Overnight on Monday our First Level Support at 2926 was tested and immediately rejected. Support levels are proving themselves in this uptrend which is an encouraging sign. On Tuesday, the previous Thursday’s Selling Day high was exceeded and that negated any short-term negative implications of that red-at-bottom low – my hunch is that a controlling price will emerge between the high on 06/08 and the low on 06/15.
Sentiment: My version of the Rydex Assets Ratio was higher at 11.65. SPX has recovered more than 80% of its decline from this years high and the ratio less than 30% – this is a positive for the market. The ratio fell to 3.35 on 03/17, the lowest since early 2016. The ratio reached 28.62 on 12/27, the highest reading in my database.
Stocks>50dyma numbers: Nyse 83% (from 87%), Nasdaq 77% (from 85%), R2000 76% (from 84%). Numbers >50 are supportive.
