Also the Rydex has come down to 85 levels thereby it will be alarming below 60 but we can summarize the sentiment as bearish now which will make declines hard to gain ground and rather signals a bottom is near of temporary nature.
The ISEE Ma's have come down substantially as well and look very close to a pattern we had in March 2008 where we had a huge put accumulation phase which was followed by a 15% rally before the crash stated 6 months later.
The only thing which will stall any rally for now is the Lunar Eclipse coming up on the 26th June which we had in a similar situation back in 1931 on the Grand Cross which triggerd the markets down in both instances. So my most likely scenario says that we will reach bottom early July around 11th making slightly lower lows like 1025 SPX before we see a rally up to 1150. Less likely is we have the low already in place at 1040 and are already in wave A up. That Ipreran sends 3 ships to Gaza makes the first option more likely.
|MONDAY, JUNE 14, 2010|
INVESTOR SENTIMENT READINGS
High bullish readings in the Consensus stock index or in the Market Vane stock index usually are signs of Market tops; low ones, market bottoms.
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