There really should be nothing to hold prices down. It's obvious the markets are short term oversold. We got 2 good pieces of news today. And the seasonality factors are strong. so.....If the S&P can't rally 6-7 points from here by Thursday, then the bears have definitely seized control of the momentum. in my humble opinion, of course.
Everyone remembers how market got killed at start of 2005. So everyone afraid to buy now. So my guess is that the opposite happens this time and market goes crazy in January. +7% to start year next month.
I'm in agreement. Sentiment has rapidly shifted from too bullish to overly bearish in just the past week or so. Perhaps we see a continued flush between now and the end of the year but I see 2006 starting strong through the end of Greenspan's term.
Lesson? LOL. You're showing me the results of a poll taken over a week ago. You'll see a reduction in bulls upon Thursdays results. I don't need to see the polling data, I can predict with virtually 100% certainty each week whether other managers are becoming more or less bullish. The action on the tape will tell you in the past three sessions new shorts are appearing.
Opinion of an old fashioned trader: AS GOES GM SO GOES THE MARKET And don't overlook the very "nice" divergence with the New Highs-New Lows. Reminds me of those 'goldy locks days' of august/september 1987.
From what i have observed, many (and i mean many) of the large stocks finished the day with short MA and long MA converging and prices balancing on thin ranges....not sure which way to go though, bull or bear. but definetly some big movement tomorrow.
Its funny, the market has been on a run for almost 2 months and after 2 down days we are oversold. The NDX is up over 200 points and has sold off a huge 25 points to get oversold. I guess we will get a bounce or selling will accelerate