Special Comment – Internal Market Technicals……..plus update at 1:40PM

One of the proprietary short-term technical indicators that we follow is the bottom-picker / top seller numbers for both short-term and long-term investors.  Bottoms are confirmed when long-term investors are picking bottoms and short-term investors are selling tops.  At the moment you have the exact opposite.  The most recent change in the long-term investor indicator was that it indicated on June 16th when the S&P was 1308 that they were starting to sell tops.  The most recent change in the short-term indiator was that they started picking bottoms on July 1 when the S&P was at 1268.  Also this current short-term indicator hit it’s highest level of picking bottoms at 9:15 Am this morning when the S&P was at 1246.

10:17 AM CDT


These are important days for one’s portfolio.  CNBC is raging against short-sellers but who else can help get markets to reflect value so that value investors can be involved.  As we said earlier, until long-term investors see value they will keep selling.  Short-term investors remain afraid that they will miss the next upmove and are the predominant force buying the market the last few days.  In fact our short-term trader bottom-picker index made a new high a few minutes ago, and the price of the market was 10 points lower than where the earlier reading was made.  So they keep buying and the market keeps going lower.  This down move is not over.

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