Last week (Friday) ES tested 3202.50, First Level Support. Value Areas this week have been generated above that level. Price printing time below 3202.50 would be a first sign of weakness. Wednesday’s Value Area was higher and wider but pre-open today ES is sharply lower.
Key charts
FTSE 100: recent multiple rejections in June/July at 6312 (1/2R Resistance off last year’s high). This indicated weakness and FTSE sold off last week. Bulls would want to see that level recovered asap.
DAX: the 4yr is at 12240. Currently DAX prints well above that level in a strong position. Last week printed its highest level since February but sold off at end of week.
Sentiment: My version of the Rydex Assets Ratio was almost unchanged at 11.6. Two weeks ago the ratio reached 12.96, the highest since 5th May. The ratio fell to 3.35 on 03/17, the lowest since early 2016. The ratio reached 28.62 on 12/27, the highest reading in my database.
Stocks>50dyma Nyse 70% (from 61%), Nasdaq 67% (from 59%), R2000 65% (from 55%). Numbers >50 are supportive.
