Big sell-off overnight. As I’ve been writing, a Value Area printed entirely below the 4672.50 would be a concern for the Bulls, and the first mechanical indication of weakness in the longer-term would be a RTH close below 4645.75 (dashed on chart), the 12th Nov Buying Day low.
Sentiment: My version of the Rydex Assets Ratio reached 58.15, earlier in the week, the highest ratio ever. The Bull fund assets that I track reached the highest level ever and Bear fund assets, the lowest. Massive retail enthusiasm and therefore potentially weak holders which could be a problem if further weakness develops.
