Despite the gulf hurricane disaster, the tightening Fed, a weaker Dollar, lowered consumer and GDP estimates, seasonal roadbumps - you name it - the upward potential of the stock market that I mentioned last week is gaining more Sentimental momentum. Market downturns don't start when the Nasdaq Volume recedes against the NYSE, as it is now - at a new recent low of 88 (150 is usually a speculative top).
The McClellan Oscillator screaming up through the zero line (to +3 from last week's -39) is Bullish, as are other Indicators such as another recent record high in Public to Specialist shorting ratio at 3.53 (rarely above 3); short interest also remains high; and the Barron's Panic to Euphoria fell farther into the Panic mode at -0.48.
Rydex Nova to Ursa funds' ratio remains low at 18, while the AAII survey flip-flopped back to the inverted Bear-over Bull ratio of @ 38/32, with the Investor's Intelligence Bears clawing up to a high 27.3%. Shorters beware! (at least in the short term).
