A few thoughts on the market:
(1) 5 unfilled gaps on COMP daily:
stockcharts.com[r,a]dhcaynay[db][pb10!b20!b50!c20!d20,2!f][ili10,10!lh5,5!lp14,3,3!ll14!lb14!la12,26,9][J7974169,Y]&pref=G
(2) SOX 7-week RSI at the highest level (.70) since March 2000:
stockcharts.com[a,a]waclynay[df][pb50!b200][iUb7]&pref=G
(3) Investors Intelligence showing newsletter writers least bearish (at 24.7% Percent Bearish) since Jan 2002. This under 25% reading occurred only during 5 rallies during the last 5 years.
schaeffersresearch.com
So, unless this a new bull market starting at SPX P/E of over 40 (as opposed to the typical 7-10 at bear market bottoms), the killing fields will start by year end leading to 3000-5000 DOW, etc. and will totally destroy the idea of investing in the market for the next 10-20 years for baby boomers. |
