ST: On Thursday last week there was a rejected test of the 2month control and ES has rallied strongly from there and yesterday price action consolidated Monday’s gains.
LT: The first sign of weakness in the LT would be a Value Area printed entirely below 4391.50, the 2month control.
Sentiment: my version of the Rydex Assets Ratio was almost lower at 24.95. SPX has closed higher for four days and over that period the ratio has fallen – that’s normally a bullish ST indiction. On Friday 30th July, the ratio reached 38.57, the highest recorded, indicating extremely hot sentiment.
Stocks>50dyma
Nyse 52% (from 49%), Nasdaq 49% (from 46%), R2000 48% (from 46%). Numbers >50 are Supportive.
