REGRESSING TO THE MEAN:

Many of the Sentiment Indicators resumed fell back to their neutral stance after 5 days of Up action. The WSJ does a nice job of highlighting Sector and Total Insider Trading each week by key employes; last week it bumped up to 15 Sellers (to 1 Buyer) - up from 12, but down hugely from 50 and 60:1 last winter. Heaviest sectors were Consumer Services, Basic Materials, and Energy. Moneycenter.msn.com has data on this subject, as does insiderscore.com, which charges a fee.
The markets did a nice job of bouncing off major support levels during the correction: the Nasdaq hit exactly the 38.2% Fibonacci retracement of the July advance at 2332, as did the SPX at its 1387 close. The DJIA almost reached the 50% level of 11,766 but stopped at previous horizontal support near 11,950. Breadth and Money Flow are again strong making it doubtful that we retest those lows this time. We are still in the optimal IRA/Pension inflow season, and the previously mentioned 10:1 Up/Down Volume days (2 within 30 days) bode for an average of 22% rise by mid-May, barring a catastrophic event.
The only notable extremes last week were a 10:1 New High/New Low ratio, and a counterbalancing negative of bouncing down off the 50 level on the McClellan Oscillator (ratio adjusted).

Mktsentiment. 3/23/2007......5Yr.HI........ LOW

DJIA ………. 12481...........12767...........7286
Nasdaq………. 2448............2515............1114
S&P500…….. 1436............1455............776
CBOE Equity put/call .65............87-5/04........46-1/03

VIX ………. 12.95.........44 9/02........10.0-11/06

ISEE-call/put ……. 113...........299-12/04.......68 - 3/9/07
(>200/Bearish)

McClel Osc..........……45...............91-5/04.........(81)-5/04
McClelSum…………… 634..........1568-6/03.......(726)-5/04

Newsletter Surveys:
Inv.Intel -Bull:…..…. ..46.6...........62.9-12/04......35-6/06
Bear:………… 28.4 .........38.2-3/03.......16-6/03

AAII-Bull/Bear ……….43.9/33.1....n/a n/a
MarketVane Bulls…. 69......... 73..............24

Birinyi Blogger
Bull/Bear Poll …………32.4/35.1
Bullish%- ……….…72...............88 -2/04...... 46-8/04

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REGRESSING TO THE MEAN: