Tuesday’s session generated the first higher Value Area (not overlapping previous) since 2nd March. It was the ninth consecutive VA below 2719, the major poc. Consolidating below a major poc is a weak sign. The first longer-term positive would be ES printing time back above that level.
Sentiment: My version of the Rydex Assets Ratio was almost unchangd at 4.23. The market bounced strongly but the ratio was unchanged which would usually be (in normal markets??) a ST positive sign. Last the ratio it fell to 3.35, the lowest since early 2016. The index reached 28.62 on 12/27, the highest reading in my database. Only twice before had the ratio printed above 26. Once in Jan 2018 and the market sold-off quickly, and once in Aug 2018 after which the market traded sideways for a month and then sold-off.
Stocks>50dyma numbers: Nyse 2% (from 1%), Nasdaq 4% (from 3%), R2000 3% (unch). Numbers >50 are supportive.
