RE: RE: S&PWell I'm pretty bearish overall I have to say. It is difficult to look too far ahead in this mkt, but for now I will say that after a possible final early Nov rally, Nov is looking very ugly to me. I have an open mind and let's see how things shape up after a large drop in Nov. I prefer to look at things from a technical and pattern view. The fundamentals always look very good at the tops, or weak at the bottoms. Not to say that fundamentals are unimportant of course.
The bullish sentiments are off the charts high right now especially Nasdaq. Check out this chart:
https://1.bp.blogspot.com/_TwUS3GyHKsQ/TMCtX-lSksI/AAAAAAAAH3k/ZEy2ZLBO6Xw/s1600/ndsi.gif
This kind of situation with sentiments like this is extremely dangerous. These extreme sentiments tend to snap back quickly as seen in the chart. In fact, the current expanding triangle which has formed on the chart since Oct 2009 is a crash pattern. The same pattern started forming in summer 2007 before the 2008 crash. This one is a larger pattern with much higher sentiments.
SC