SINKO DE MAYO?:

Even though May has been the fourth best month for the market since 1990 ( after the trinity of Nov.Jan.), "Go Away In May" is still heard as we enter the bad semi-annual cycle : May-Oct. Up until this week money has been flowing slightly into Mutual Funds, an eventual sign of a top (nonsmart money) -the good news is that almost all of it has been going into overseas funds the past 5 weeks. Since the world funds are up 8.2% vs U.S. @ 6.5% that could reverse, if the dollar holds. More good news is that Asian central gov'ts are considering switching from only Treasuries into some equities for higher returns.
Other short term Bullish signs are the inverted Bull/Bear ratios from AAII (2 to 1) and Birinyi Bloggers. The CBOE put/call crept higher to 62, although the ISE is more gloomy. Other bad signs down the road are corporate insider selling back up to 40:1, especially tech stocks; and high levels of the McClellan Summation Index; the Bullish percent at 78 has only been higher once this decade (88). Also high is the Nasdaq to NYSE Volume, a sign of speculation that precedes a fall, although veteran Phil Roth stated in Barrons that tops are preceded by a flight to large cap quality (??).
Here are the numbers - the Spring TSAA Review has the 5-year highs/lows that preceded corrections:

Mktsentiment. 5/4/2007......5Yr.HI........ LOW

DJIA ………. 13264...........132640...........7286
Nasdaq………. 2572............2572.............1114
S&P500…….. 1505............1505............776
CBOE Equity put/call .62............87-5/04........46-1/03

VIX ………. 12.9..........44 9/02........10.0-7/05

ISEE-call/put ……. 151...........299-12/04.......58 - 3/9/07
(>200/Bearish)

McClel Osc……………5...............91-5/04.........(81)-5/04
McClelSum…………… 838..........1568-6/03.......(726)-5/04

Newsletter Surveys:
Inv.Intel -Bull:…..…. ..51.7...........62.9-12/04......35-6/06
Bear:………… 24.7 .........38.2-3/03.......16-6/03

AAII-Bull/Bear ……….28.6/54.3....n/a n/a
MarketVane Bulls…. 72......... 74..............24

Birinyi Blogger
Bull/Bear Poll …………34.3/40.6
Bullish%- ……….…78...............88 -2/04...... 46-8/04
SentimentTrader
Short/longtermBL/BR. N(neutral)/N

*Insider corporate sellers 40:1
Sectors: Most Buyers: Finance, Tech
Most Sellers: Tech (37% of Total);Healthcare, Finance, Consumers,