Today: 5day is at 4691. ES opened RTH above that level and sold off immediately. 1 hour in and printing 4672. I’m holding off new longs unless 4691 is recovered or that 5day migrates lower.
LT: 4570 is First Level Support. A RTH close below 4613, the low of last Wednesday’s Buying Day, would be a first indication of weakness.
Sentiment: my version of the Rydex Assets Ratio was higher at 33.67. The previous week’s extreme at 48.48, was the highest ratio ever. This is a contrarian indicator. The next technical indication of weakness (which may come from a higher level) will probably lead to a larger decline than the market will be expecting.
