I think the current market behavior is very similar to the one we had around 5-Nov-2009 last year. Based on this thesis, the market will most likely do a consolidation to slightly higher for the next few weeks. I will be a dip buyer next week. If the bears scores surge to around 25, then I will be very cautious.
The first plot below is my short-term bulls vs bear scoring system which is updated daily in my blog. The second plot is the SPY plot during the same time frame.
Sunday, February 21, 2010
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