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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (14638)	5/22/1999 12:47:00 AM
From: pater tenebrarum	Respond to of 99985

David, the individual equity ratio has given bearish readings for a long time while the OEX ratio was extremely bullish. lately the situation has changed in only one respect: the OEX ratio has begun to deteriorate. i have argued throughout that the dichotomy would keep the market in a trading range, which is essentially what happened. with the FOMC meeting and expiration week behind us, it will be important to see how this develops with the new front month. if the readings next week resemble those of this week, the market will be in trouble soon. note that other sentiment indicators are also at or near extremes; investment newsletter writers are now 60,9% bullish, and while this is not a good timing indicator, it is a warning sign especially in the context of the weak put/call ratios. regards, hb