Today was a very large SOS day. SPX could still go 20-40pts higher, but odds now say upside is limited for a few days with bigger chance for a drop.
Many indications of sentiment appear to have reset above or near bullish summer levels.
http://tickersense.typepad.com/
http://money.cnn.com/data/fear-and-greed/
http://www.aaii.com/sentimentsurvey/sent_results?adv=yes
some extremes at http://sentimentrader.com/
Currently, a Fib 23.6% retracement of 1820 is 1875ish. A Fib 38.2% retracement is 1946. So, it seems the minimum range for a pullback of any wave type is 1946-1975 although that range will rise slightly as SPX rises. The 1960s have heavy price-volume.
Good fortune
Please comment on November 6 SOS on SPY
ReplyDeleteThe number is -1657? That sounds frightening.
Be Careful, That is nuts!!! There were a few SOS days around -500 on Aug 18 and Sep 24/26. SPX managed to sluggishly rally 30-40pts over 3 weeks in the first case before collapsing into the other dead-cat readings. This number is -1657 which is by far the highest I ever remember seeing. Historically, it does not bode well for the market but timing is not always immediate. Wow! I saw another article today referencing multi-year sentiment highs using indicators other than those I mentioned. Definitely getting very frothy. VIX is diverging.
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