Key charts
FTSE 100: upside last week was capped at the 6312, 1/2R Resistance. Multiple rejections at that level and then declined this week. Big Support at 5870, the major. Bulls would want to see recovered asap.
DAX: the 4yr is at 12240. Today DAX prints just below that level in a weaker position.
Sentiment: My version of the Rydex Assets Ratio was lower at 11.74. At the recent high SPX had recovered more than 80% of its decline in earlier in the year but the ratio recovered approximately only a third – this would usually be considered a positive for the market. The ratio reached 28.62 on 12/27, the highest reading in my database.
