Strong trend up for seven days with no Value Area generated below the previous day’s. See 08/19 pre-open comments, highlighted on chart. 3370.50 is First Level Support of importance.
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 that Support looks very likely to be tested again – is printing very close today.
DAX: the 4yr is at 12240. DAX tsted that Support in Late July and rallied.
Stocks>50dyma Nyse 67% (from 77%), Nasdaq 63% (from 67%), R2000 62% (from 69%). Numbers >50 are supportive.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 12.91. 08/17 the ratio reached 13.74, the highet 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.
