Monday’s Value Area was generated entirely below 4340 (1mn poc) which is a first sign of weakness on the longer timeframe, see previous comments. I want to see ES printing back above that level before looking at new longs but Aggressive Buying (green) was marked yesterday which is a positive and breadth numbers improved somewhat, see below.
Sentiment: On 8th July, my version of the Rydex Assets Ratio reached 34.73, the
highest ratio recorded, indicating extremely hot sentiment. In the short term, the ratio fell quite sharply yesterday, from 32.2 to 26.5, as the market rallied back. That’s usually a positive indication in the ST.
Stocks>50dyma
Nyse 28% (from 20%), Nasdaq 35% (from 24%), R2000 30% (from 19%). Numbers >50 are Supportive
