Early in Thursday’s session there was a rejected probe of the v minor (4day) poc at 3264.50, see yesterday’s highlighted comments. Pre-open today ES has briefly tested 3202.50, First Level Support. Price printing time below that level would be a first sign of weakness.
Key charts
FTSE 100: recent multiple rejections at 6312 (1/2R Resistance off last year’s high). Bulls would want to see that level recovered asap. Tested again last week, but not exceeded, and again this week.
DAX: the 4yr is at 12240. Currently DAX prints well above that level in a strong position. Has today printed its highest level since February.
Sentiment: My version of the Rydex Assets Ratio was higher at 12.52. The ratio has retraced just over one third of its decline from this year’s high; the S&P500 has retraced nearly 90%. As mentioned previously, this is usually a positive indication. 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 Nyse 73% (from 72%), Nasdaq 71% (from 70%), R2000 68% (from 67%). Numbers >50 are supportive.
