Friday Market Sentiment
Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |
Based on what I see on the news this week, the world really noticed out-of-control energy prices. A pullback in energy commodities and shares is likely which I view as a buying opportunity.
I was surprised by the rally in Treasuries today, and impressed by the restrained level of new lows. These levels are still below where they were during spikes in the previous price uptrend which I think is bullish for the market longer-term. So far this selloff looks to me like we are headed towards a normal correction in prices where buying returns when prices pull back into the base.
The bloggers got scared out of the market quickly, but the individuals and newsletter writers are holding strong. These surveys are neutral towards to market at current levels.
This chart does a better job at the moment showing where sentiment stands, and the trend which has been off extreme lows headed higher which is bullish. These levels indicate there is more room for this market to run before it tops.
The chart shows the short-term sentiment level. The 10-day put/call average is at a level that often indicates a short-term correction is likely, probably 3-4 weeks.
The insider sentiment remains favorable, although it has fallen off from the highly favorable levels a couple months ago. I've added the Vickers and Investor's Intelligence data. Investor's Intelligence continues to believe the insider data favors stocks in the weeks ahead.
