On 3rd Sep, there was a day session close below the low of the previous day which was a Buying Day. I call this a “disruption” for the Buyers and it often leads to further weakness. Same thing happened yesterday, with a close below Tuesday’s Buying Day low (dashed line). That’s not good price action. However, the 3220 area of Support held on Monday (see Monday’s highlighted, pre-open comments) and again yesterday. Price below that, now proven, Support would indicate further weakness. Bulls would hope that Support holds but I would want to see Significant Buying (green) marked above 3770.5 before considering new longs.
Stocks>50dyma Nyse 22% (from 31%), Nasdaq 23% (from 31%), R2000 19% (from 28%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was slightly lower at 11.57. On 09/01 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.
