The 2month Support at 3217.50 was tested on Friday, and ES rallied strongly from there. Price printing time below that level would be first sign of weakness. In the dayframe, there is minor (8day) Support at 3289.50. This may be a useful level to monitor in the ST.
Key charts
FTSE 100: recent multiple rejections in June/July at 6312 (1/2R Resistance off last year’s high). This indicated weakness and FTSE sold off last two weeks. The major Support at 5870 was briefly tested on Monday – FTSE rallied from there. Lower today.
DAX: the 4yr is at 12240. DAX closely approached that Support last week.
Sentiment: My version of the Rydex Assets Ratio was lower at 10.81. 07/10 the ratio reached 12.96, the highest since 5th May. 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 68% (from 62%), Nasdaq 68% (from 64%), R2000 65% (from 60%). Numbers >50 are supportive.
