Sharp sell-off on Thursday and Friday generated a lower Value Area. As I wrote pre-open Friday “There is Support at the 3370.50 poc but it is relatively minor”. That Support was briefly tested but Friday’s VA was almost entirely above that level. A value Area generated below 3370.50 would suggest further weakness.
Stocks>50dyma Nyse 64%, Nasdaq 53%, R2000 57%. Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio ended the week at 13.23. On Tuesday the ratio reached 14.37, the highest since early March. The ratio fell to 3.35 on 03/17, the lowest since early 2016. The ratio reached 28.62 on 12/27, the highest reading in my database.
Key charts
FTSE 100: recent multiple rejections in June/July at 6312 (1/2R Resistance off last year’s high). This indicated weakness and FTSE sold off to test the major Support at 5870 in late July and again this week. FTSE is printing almost at that level today.
DAX: the 4yr is at 12240. DAX tested that Support in Late July and rallied.
