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The DJIA is less than 100 points from where it entered the latest Trading Range last June, and has had a wild ride in the form of a Megaphone - not a pleasant thought if it turns out to be distribution rather than re-accumulation!
After an ugly December sentiment readings have regressed to the mean thanks to a Santa rally (so far). The put/call ratio and VIX have quieted down; the A/D line and McClellans are neutralized, although last week's New Highs to New Lows were a 1:6 with year-end selling.
Bull/bear surveys, reported Wednesday, were leaning toward bullish complacency, although the best indicator - the AAII - inverted to 36/47, which is always welcome. Insider selling and Public shorting dropped precipitously, and the Bullish per cent - stocks on a buy signal - actually dropped more than its 3 box (6%) stop, giving a SELL signal.
All the above calls for tic-tacs for the bad breadth!
Finally, AMG reports huge outflows - $15B - from mutual funds, but an equal amount of inflows from ETFs.
Here is the data:

Mktsentiment. 12/21/2007 Last Week..... .5Yr.HI...... LOW

DJIA ………. 13450………..13339………..14093..............7286
Nasdaq………. 2692………….2635…………2810.............1114
S&P500…….. 1484………….1467…………1561………..776
CBOE Eq. put/call …60……………84……………91-8/07…..........46-1/03

VIX ………. 18.5………….23.3…………….44.. 9/02 bu........10.0-7/05 br
Intrade.com-DJIA-atm/
Recession% 57/42…………50/47……………59(bullish)….31(bearish)
All Equities (ETF)
McClel Osc…………16…………..-17……………91-5/04 br......(81)-5/04bu
McClelSum………-415…………..-324…………..1568-6/03.......-917

Newsletter Surveys:
Inv.Intel -Bull:…..…56.5………….53.3………..62.9-12/04br......35-6/06bu
Bear:………… 22.4………….25.6………… 38.2-3/03.......16-6/03

AAII-Bull/Bear ……35.9/47.2…….47.6/35.7……..n/a n/a
MarketVane Bulls…56……………58…………. 74br..............24bu
UBS investor confidence.50……….44!nl ………178……………44
(monthly change)
IBD: Short Interest- …8.87………..8.72….……8.95………. 4.0
Public/NYSE Spec.-…10………….14.7…..……18.25bu……….1.0br
Birinyi Blogger
Bull/Bear Poll ………52/32………43.3/33.3
Bullish%- ………46……………52……….…88 -2/04br.....36bu
*Insider corporate sellers.11:1……22:1………..97…………..6
Sectors: Most Buyers: Finance
Most Sellers: Tech, Finance

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