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发表于 2021-10-25 12:43 AM
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I would say bulls are still safe at the moment, given that institutions are still accumulating, lack of volume increases (while prices are rising) to indicate distribution, option sentiment not quite over the top and improving market internals (based on breadth).
My prop sector correlations charts are on a buy
Institutional buying % is still in the accumulation zone
SPY volume ratios tend to bottom out before price tops. We are not quite there yet
SPX breadth is divergent - but it also means that it has a lot more room to go up as well. More importantly, this indicator tends to decline ahead of price as well
CPCE is getting quite overbought. However, this indicator also tends to top out ahead of prices. Again, we are not there yet.
With the strong seasonal coming into play, I would say bears shouldn't get their hopes up too high. While equity indices are indeed overbought and some sentiment surveys (such as AAII) are showing retail amateurs becoming too bullish, I am doubtful we will see a significant pullback here. I see consolidation/minor pullback being far more likely and subsequent higher high for SPY/SPX. Next hurdle for bulls (where a sizeable pullback is likely), time wise, would be late Nov to early Dec in order to set up a Santa rally. |
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