Last week, the 8month migrated to 3106.5, see chart. An early probe into that Resistance was rejected early in Wednesday’s session and ES declined from there. Bulls would want to see that level recovered quickly or the 8mn migrating lower. First Level Support is at 2926.
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.
