Friday i was prepared for a little up move but nothing as big as what took place. Most of my charts still show weakness, but that can last a long time before they resolve. Unless volume starts coming in on the sell side i dont think we will have a deep correction, a day or two of selling at best, i think. It sure looks to my inexperienced eyes that this is a top forming since there are wild swings / indecision, howewer i think the higher we go the stronger the pull to the april highs. I am looking lo load off my shorts if we get some sort of pullback next week.
Short timeframe ratio charts:
Longer term ratio charts:
Some more internals:
I took a look at my earlier mashup of google trends data vs. spx and there is an interesting correlation with news reference volume for keyword “bullish”. It should give one an idea of how the media is looking at the market over time. You can see the original chart that i made way back in beginning of august here: http://darell.posterous.com/google-trends Amazingly it turned out to mark the beginning of the selloff. i dont put any faith in this stuff, but its just interesting to watch and play around with.
You can try out google trends here: http://www.google.com/trends