Thursday, August 26, 2010

AAII sentiment in position for the bulls

We have a 2:1 ratio of bears vs bulls which is consistent with ST/IT market bottoms. The conflictions of the indicators is making my head spin. Which do I follow which do I ignore? Well, one thing this reading suggests is that if we have further downside in the market it will not be serious but taken alone at face value it's giving the green light to the bulls to make a charge higher right here right now.

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