Friday was an Aggressive Selling day (usually indicates lower) followed immediately by an Aggressive Buying day. This is very rare and in the last five years has only happened three other times. The market was higher in the short-term after all three. There were 9 instances in the four years prior to that and with one exception the market was higher in the days that followed.
The 4mn Support is at 4163. We have yet to see a Value Area printed below that level – see chart. Should that happen it would be a bearish development in the longer time-frame. There is minor Support at 4197.
Sentiment: My version of the Rydex Assets Ratio was higher at 29.57. On Tuesday last week the ratio reached 31.27, the highest ratio recorded indicating extremely hot sentiment.
Stocks>50dyma
Nyse 45% (from 33%), Nasdaq 46% (from 41%), R2000 45% (from 35%). Numbers >50 are supportive.
