Wednesday, January 26, 2011

Technical & Fundamental Indicators

There may be too many bulls in the stock market, suggesting that a correction is increasingly likely. Investors Intelligence Bull/Bear Ratio climbed to 2.9 this week, after slipping from an 8½-month high of 3.0 to 2.7 last week. The reading was at 0.8 at the end of August, which was the lowest since March 24, 2009.

On the other hand, our Fundamental Stock Market Indicator (FSMI), which is a very good coincident indicator of the S&P 500, was at a cyclical high last week.

No comments: