RALLY FORTH:

Although Sentiment is most useful at turning points, the intensity
of the Indicators can often predict the extent of the subsequent move.
After the market reversal these Indicators tend to subside back to
the mean, which is the case this week.
A few extremes include money market funds which did reverse,
with 32B going into them, setting an all-time record of $3.47T -
great fuel for investments, considering
the low rates (negative after Inflation), and the fact that they are not
even insured by FIDC nor SIPC.
Also Bullish this week, Inv.Intell. surveys are still inverted, a rara avis.
The McClellan Oscillator is bumping up against +50 again, at 44 -so we
could see a brief overbought correction this Option Expiry week.
Here are the numbers:

MktSentiment. 8/8/2008 Prev. Week.....5Yr.HI......LOW

DJIA ………. 11734……….11326………..14093............7286
Nasdaq………. 2414………….2310…………2810.............1114
S&P500…….. 1296…………1260………….1561………..776
CBOE Eq. put/call …67……………75……………..92-1/08….....46-1/03

VIX ………. 20.6………….22.5…….…….44.. 9/02 bu..10.0-7/05 br

McClellan Osc……….44………….40……………91-5/04 br...(-81)-5/04bu
McClelSum……….…-587………-767…………..1568-6/03.......-1187
Newsletter Surveys:
Inv.Intel -Bull:…..…34…………..30……….…63 (12/04br)......35-6/06bu
Bear:………… 43.6……….50…..………… 38.2-3/03.......16-6/03

AAII-Bull/Bear ……35.6/42.4…..40/41.2……..n/a n/a
IBD: Short Interest- 13.8………..13.6…………15.0………. 4.0
Public/NYSE Spec.-…17.6……….20.5…….….21.9bl…………..1.0br
Bullish%- …………47…………44…….…88 -2/04br.....19bu
*Insider corporate sellers.8:1…….11:1………..97………….4
Mutual Fund Inflows: (1.1B)
ETF Inflows: 5.8B
Money Market Inflows: 32B