There is a "lurking" feeling deep inside us somewhere that we may get another shake out. This has not been translated into the charts yet, but some of the sentiment indicators we are watching are really bullish.
1) The chart above is the nasdaq daily sentiment is almost even at bulls/bear
2) The put call ratio is hovering around 0.75 - we would like to see it above 1.1 or so
While it can be that this bullish sentiment acts as a tailwind for the rally. But...
Bottomline: We will continue to watch these sentiment indices. A "reset" of the sentiment would be a really help fuel the rally with lots of force.
Addendum Rant (feel free to ignore): Was just watching a few archived analyst interviews on TV today. Got to give it to Robert Prechter!
You cannot argue with his timing and conviction - it is a dream trade, the perfect one.
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