I wrote that a RTH close below 4354.75, the low of Monday’s Buying Day (dashed), would be the first indication of weakness. Thursday’s RTH close was below that level (just) but again the Value Area on Thursday (like the previous four) was printed entirely above 4340 (1mn poc) and as I have also written, ES is in a strong position if it prints above that level.
Sentiment: my version of the Rydex Assets Ratio was higher at 34.1, close to 34.73 reached last week, the highest ratio recorded, indicating extremely hot sentiment and a warning.
Stocks>50dyma
Nyse 33% (from 33%), Nasdaq 34% (from 38%), R2000 29% (from 32%). Numbers >50 are supportive.
