pre-open on 27th I wrote “time below 3797 would suggest further weakness and a test of the longer-term Support at 3672”. Overnight that Support has been tested with ES printing as low as 3656. From the test ES has rallied to 3750. Price printing back below 3672 would suggest LT Support is breaking down and there would be further weakness but for now it has held and the Resistance is at 3797.
Sentiment: My version of the Rydex Assets Ratio ended the week at 19.65. Down from last Tuesday’s ratio at 22.03, the highest since February last year.
Stocks>50dyma Nyse 44%, Nasdaq 65%, R2000 43%. Numbers >50 are supportive.
