On 11/18, I wrote >>from the distribution analysis there may be a fast rejection if price prints above 3700. That’s an “if” for the moment.<< see highlighted comments on chart. We saw a swift rejection of that level on Wednesday with ES reversing and closing the session below the lows of two Buying days (12/04 and 12/08). Seeing Significant Buyers being disrupted like that usually leads to more weakness so I’m eliminating new longs here at least until Significant Buying (green) is marked again. If I mark Significant Selling (red) from here, that would suggest something more serious but I’d want to see that kind of evidence that Sellers are taking control especially in this news sensitive, volatile market.
Sentiment: My version of the Rydex Assets Ratio was higher at 20.50, the highest since February.
Stocks>50dyma Nyse 84% (unch), Nasdaq 84% (from 86%), R2000 88% (from 89%). Numbers >50 are supportive.
