Bobby, I think that there are a lot of cross currents here due to expiry this Friday, which are hiding some of the picture, a lot of indicators have or are reaching extreme numbers, look particularly at the "bullish percentage index" of the various indices. The Naz 100 has already turned after reaching 8, only the September lows were lower in the last two years, the S&P 100 is even under the September lows, and has not turned yet (by the time it turns it may be a little late...), the same with the 500 and the Naz in general, all very low levels and ready to turn. This is just one series, but when we made the low on Monday, the number of new lows was smaller then the numbers of lows made a week ago and two weeks ago. Similarly, the general Naz volume has finally climbed above the 2 B for quite a number of days here. Some of these indicators are so extreme that they may even force me to extend the scope of the rally (right now, I a staying with my target of 1526/55, until I see the colors of the rally itself <g>). I doubt a crash is imminent, not here, at least not before we have a good additional 150/200 Naz points advance from here, IMTO. I am at a clownish 20% cash (and few times during the day I was actually fully loaded, just took profits to lighten up.. overnight accidents being so common...)
Zeev |
