Sunday, October 24, 2010

Investor only, for fear of low level hint top market

All investors and traders are aware, investors is an indicator of "contrary", still at high levels of optimism and convenience market top and extreme levels of fear and bearishness at the bottom of the market.

Because the feeling can stay at extreme levels for some time, it can serve as both the market, but when it reaches the extremes, it serves as a warning to keep an eye on signals and other conditions.

Weekly by Association member survey results us individual investors (Institute) published last night and only to 49.6% and bearishness 25.2%, a spread of 24, 4. survey reached 50.9% upward a month earlier, so that it remains in its area distributed to increase to approximately 50 %.Il warning reached only 48.5% bullish, 29.7% bearish top April this year.

Index VIX (aka fear index) is also showing a low level of fear (high level of only and convenience), bouncing around 20 in the region associated with trays of rally since the last bull market has ended in 2007, as marked by the red vertical lines in the table below.

And October 12 investors Intelligence Sentiment survey showed 47.2% bulls, bears only 22.5%.

Thus, it would be wise to at least be aware of the situation of feeling at this stage, particularly with the Dow Jones index internal resistance as measured by its index of relative in negative divergence with last high index Dow Jones (its lower highs is RSI) .c ' is also the situation in previous rallies this year, as marked by short red lines tops on the map.

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