I gave the bear caution (too many equity puts), now here is the bull caution. NDX bullish percent is coming up to where we have seen sizeable corrections in the past. The reading is 72. Note that 73 saw the November top and last January's top and 82 saw the December 2004 top. There is enough pessimism to move us above 73, but bulls are on borrowed time whenever we get above 70. If we rally hard from here, you can bet sentiment would change very quickly and an even higher BP reading with optimism would then be quite a strong sell signal. Just another reason to trade the markets day by day. Watch NQ (NDX futures) 1818.75, weekly R1. Support below that is 1814, followed by 1810 and 1805. The bullish scenario is eradicated below 1805. Upside breakout potential is 1845.
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on Wednesday, February 14, 2007 at 2/14/2007 08:49:00 PM.
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