Market developed as anticipated in my last post “The topping process is in full shape”. As I wrote I think we will bounce from here and there is strong evidence for that. When AAII Investor Sentiment released their data last week I thought that cannot be true. But this weeks data confirm them.
You see here the S&P500 index and the AAII Bearish Readings. Normally such high bearish readings are only seen after corrections but normally not when the markets are already extended and supposed to be in a topping process. That´s really unusual. But it is what it is – meaning the market as I wrote in the last post will at least bounce around for some more weeks before correcting. Technically you have all evidence there that the topping process is in, from a sentiment point of view quite the contrary. We just can wait and see how it plays out, maybe market is not correcting at all. Yesterday I saw CNBC talking about a Head and Shoulder pattern forming and there was also a yahoo poll about if there is a market correcting coming. That makes me very very skeptical if we can correct. Best guess we bounce, make new highs and sentiment changes.
Cheers
p.s. if u like what u see I would be delighted about a comment thx
