I’ve been writing that a Value Area printed entirely below the 4672.50 Control would be a concern for the Bulls. Price during Friday’s shortened session took place below that level – I’m interested to see what develops today but ES is in a weak position below that price.
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. Again, I’ll be watching for that today. 4636 could attract time.
Sentiment: My version of the Rydex Assets Ratio reached 58.15, early last 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 at that point and therefore potentially weak holders which could be a problem if further weakness develops.
