Technically last week was poor. The previous Friday I had marked Aggressive Selling and pre-open Monday wrote “ES is printing below 4482.0 which is First Resistance at the start of this week.
Bulls would want to see that level recovered quickly or a test of 4391.50 would look likely.” ES never recovered that level and spent the whole week in a weak position below that point. The week ended with further Aggressive Selling being marked and will open today’s RTH much lower. As I’ve been writing for weeks “The first sign of weakness in the LT would be a Value Area printed entirely below 4391.50” – this level is now 3month control and First Resistance.
Sentiment: my version of the Rydex Assets Ratio ended the week at 35.90, down from 38.63 on 09/09, the highest ratio ever, indicating extremely hot sentiment.
