Market Attitudes Flat Lining
In our April 13th we spoke of our measurement of market attitudes and the fact that on April 2, the bullish divergence hit it’s highest level since November 24, 2008 a time when the crash was well in place but 22 percent before the bottom. So this is a much more risky time to be very bullish, instead of being close to a bottom, we are close to a top.
Since April 2 the measure has dropped to just above zero on April 21 (readings of +2 to +4 on a scale of +20 to -20, meaning attitudes flat lined at just slightly bullish).
What is interesting is that the market guru’s out there have, starting on May 4th, been pushing for an upside breakout of the S&P. To date the S&P is up a little less than 1 %, 0.7% actually.
So we are watching for a signal to employ more aggressive defensive measures.
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