Wednesday 14th August 2019
Both Aggressive Buying (green) and Selling (red) have failed to extend over the last few days. This is rare (see Pulse Chart) and most likely represents a heightened polarity of opinion. Daily technicals look weak but sentiment is overly bearish (i.e. contrarian bullish) – not an ideal environment to make directional bets.
As I have written before, when both Significan Buying and Selling fail to move the market out of a range there is nearly always a poc of some significance developing and that is the case here. The 4mn poc has migrated to 2927. To keep things simple let’s assume that price above/below that level indicates strength/weakness and assume that (now the controlling price has emerged) Significant Buying/Selling above/below that level will see extension.
Also note that four four sessions no Value Areas have been generated entirely below the 15mn Support at 2887. Maybe a bullish clue?
Stocks>50dyma numbers: Nyse 39&% (from 36%), Nasdaq 41% (from 36%), R2000 42% (from 38%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 19.92. Down from 24.14 on 07/29, a 10month high.
