Wednesday, November 21, 2007

The Market has Landed

Hey, remember all that talk of the lows of August? If you don't, go back and read a rant I had on V-shaped bases and the debate regarding a test of that huge reversal day of 8/16/07.

V-Shaped vs. Double Bottom

Well it took a little while, but here we are at the prices of that insane day. It looks like ol' Bill O'Neil was right.

And now about the sentiment concerns I've had. If you look at the Investors Intelligence survey on Aug 16, you'll find extremely bearish readings. Looking at this last weeks survey, you'll find a reading of over 50% bullish and still under 30% bearish, not exactly the bearish readings that are associated with a major low. The conclusion is obvious, we have more downside action ahead of us.

Market Harmonics has a free sentiment web page.

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