I’ve been writing that a Value Area printed entirely below the 4672.50 Control would be a concern for the Bulls. That’s what we saw yesterday.
The first mechanical indication of weakness in the longer-term would be a RTH close below 4645.75 (dashed on chart), the 12th Nov Buying Day low. That didn’t happen yesterday.
Dayframe: Mondays’ RTH approached the Resistance at 4672.50 but didn’t test it. Overnight ES has sold back close to the lows. A v min control has emerged at 4610.50 and bulls need to see ES printing above and holding that level today.
Sentiment: My version of the Rydex Assets Ratio was lower at 50.91. Down from 58.15 reached early last week, the highest ratio ever. The Bull fund assets that I track reached the highest level ever and Bear fund assets, the lowest. Massive retail enthusiasm at that point and therefore potentially weak holders which could be a problem if further weakness develops.
