Betting on a correction…

Over the past 2-weeks the %-bulls indicator has dropped from 59% to today’s reading of 40%.  This is telling us that more people are shorting the market - betting it will go down.  The more people bet on the correction, the less likely it is to happen.  40% is a reasonably low number and that is bullish for the market. 

 

On the other hand we have seen a lot of small moves to the upside in S&P price and that indicates this rally is slowing down.  There is always something to worry about.  As always we’ll have to wait and see.

 

NTSM computer analysis still indicates a HOLD.