We have finally gotten more of the pieces of the puzzle for a bottom. The sentiment indicators are very bullish now from a contrarian viewpoint. What a difference one huge selloff day can make! The $VIX, now over 48, jumped as high as 57 on Friday intraday, an astronomical figure; the VXN traded down to 78, from an intraday high of 91, both with their MACD's having bullish implications.
The sentiment indicators now give positive signals. The advisors bullish is 39% and bearish are 36%, which is the smallest differential in many months. Short interest is very high. The equity-only put-call ratios, as well as those of other major put-call ratios - the S&P 100 Index, ($OEX), the Nasdaq 100 Trust (QQQ), S&P 500 ($SPX) and the Nasdaq 100 Index ($NDX) - all show extreme oversold conditions. |
