Technical analysis is seen somewhere between tarot cards and voodoo according to the academic "theorists". I just can't believe this stuff is still taught in schools. The fundamental flaw as I see it in their arguement is assuming that all market participants will view the same information the same way. I can't think of anything more bogus than that. All you have to do is watch bubblevision to get a sense of how people will view the same information differently. To one person, if Intel makes their numbers, it's a buy. To another, even if they make their numbers, top line growth could be slow, or margins are declining and they'll go short. The same thing with technical indicators. The VIX is one of the best and mostly widely used sentiment gauges around. But not everyone buying stocks is even aware of it. Not the novice. Most mom and pop investors can't even read a balance sheet. I don't know how the theorists can explain the consistent success of some day traders. Or the success of Warren Buffet. Reading about him in Fortune magazine today, I was struck by the comment about,..."he must drive the efficient market theorists crazy". By consistenly beating the market for 3 decades, he must be the luckiest man on earth then.