Thursday’s Value Area (time) was generated above 4536, which is a first sign of strength, see yesterday’s comments. Today the level to monitor is 4579 as Support. The next sign of strength would be time printed above 4622 Resistance. As mentioned earlier in the week I’m waiting until Significant Buying (green) is marked again or ES prints a Value Area back above the 4672.50 Control before looking at new longs.
Sentiment: My version of the Rydex Assets Ratio was higher at 49.53. Down from 58.15 reached 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.
