The minor control migrated to 4570 on Wednesday. Value Areas on Thursday and Friday were generated entirely above that level, an indication of strength. 4570 is First Level Support. ES has opened RTH higher this morning. A RTH close below 4560, the low of Friday’s Buying Day, would be a first indication of weakness.
Sentiment: my version of the Rydex Assets Ratio ended the week at 36.93. Down from Thursday’s extreme at 48.48, the highest ratio ever. This is a contrarian indicator. The next technical indication of weakness (which may come from a higher level) will probably lead to a larger decline than the market will be expecting.
