QE II - SHIP OF FOOLS:

As the QE II sinks into oblivion, the markets are apparently ignoring it , as well as the debt ceiling issue (Treasuries are again going the wrong way, just like last year after the Fed decision).

Other than the AAII Bull/Bear inversion (bullish for the market), not much has changed going into Memorial Day.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	12441	12512	14093	6626
Nasdaq:	2796	2803	2861	1114
S&P 500:	1331	1333	1561	683
CBOE Eq. put/call:	58	71	96-10/08	46-1/03
VIX:	16.0	17.4	90	8.8
McClellan Osc:	16	(20)	108	(123)
McClellan Sum:	458	573	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	n/a	n/a	63	22.21
InvestorsIntel.Bear:	n/a	n/a	54.4	16
AAII Bull:	25.6	26.7	n/a	n/a
AAII Bear:	41.4	41.3	n/a	n/a
US Equity-1 week lag	n/a	(1.5B)
Money Market Flows	24B	(12.4B)
Baltic Dry Index:	1467	1271	11700	663
Bullish %:	74	74	89	2
Insider Corporate Sellers:	23:1	28:1	235:1	2.4:1

THE LOVE OF POWER, THE POWER OF LOVE!:

Talk about "Behavioral" Science - who is next to fall from Grace? Strauss-Kahn, Arnold, Tiger, Spitzer; even Lance Armstrong - the All-American Boy- fell in love with his own blood. Even Barry Bonds' image is worse than Greece's Bonds.
It looks like Sell In May is back in favor, after many years reversing that trend - from worst to first and back again. Although many Sentiment Indicators have been warning of at least a Stop-Look-Listen Trading Range, which started in February, and ending in a MayDay "Upthrust after Distribution", current IOI's (Indicators of Interest) are as follows:
Although legal Insider Trading (of Key Employees) set a record high in Selling earlier this month, the previous record was at the start of the March '09 Bull Run.
Bullish "for" the market this week are the CBOE put/call ratio of 71, a negative 20 on the McClellan Oscillator, and MMF flows doing a huge flip-flop from $24B inflows to $12B outflows.Technically, most markets have pierced their 50-day MA, but are still stretched above the 200-day averages. Hopefully the correction will end there.
My newest Indicators are showing danger zones - NASD Volume vs. NYSE (speculation), and Commitment of Traders -large vs. small. Finally, the Bullish % fell 3 points (6% on a 2 pt. box Point & Figure chart), which is material enough to be a Sell signal.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	12512	12595	14093	6626
Nasdaq:	2803	2828	2861	1114
S&P 500:	1333	1337	1561	683
CBOE Eq. put/call:	71	66	96-10/08	46-1/03
VIX:	17.4	17.1	90	8.8
McClellan Osc:	(20)	(14)	108	(123)
McClellan Sum:	573	677	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	n/a	n/a	63	22.21
InvestorsIntel.Bear:	n/a	n/a	54.4	16
AAII Bull:	26.7	30.8	n/a	n/a
AAII Bear:	41.3	35.5	n/a	n/a
US Equity-1 week lag	n/a	(2.2B)
Money Market Flows	(12.4B)	24B
Baltic Dry Index:	1271	1306	11700	663
Bullish %:	74	77	89	2
Insider Corporate Sellers:	28:1	43:1	235:1	2.4:1

IN THE MONTH OF MAY:

Although May, so far, is obeying the SELL IN MAY rule by being in a downtrend - lower high and low closes, support at 1330 on the SPX is looking to hold. Last week's Sentiment Indicators were boringly benign, to say the least; miniscule moves in most of them as well as Indices. The shocking Insider Selling (legal, for a change) abated greatly. Any moves were actually on the positive side (inverted AAII Bull/Bear ratio). The complementary Inv. Intell. ratio remains hidden, unless a reader can locate it somewhere other than a pay site. Bad news abounds, with QEII apparently ending, and Greece and Japan looking like bugs searching for a windshield.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	12595	12638	14093	6626
Nasdaq:	2828	2827	2861	1114
S&P 500:	1337	1340	1561	683
CBOE Eq. put/call:	66	63	96-10/08	46-1/03
VIX:	17.1	18.4	90	8.8
McClellan Osc:	(14)	(13)	108	(123)
McClellan Sum:	677	641	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	n/a	n/a	63	22.21
InvestorsIntel.Bear:	n/a	n/a	54.4	16
AAII Bull:	30.8	35.5	n/a	n/a
AAII Bear:	35.5	31.9	n/a	n/a
US Equity-1 week lag	n/a	(2B)
Money Market Flows	24B	(.4B)
Baltic Dry Index:	1306	1314	11700	663
Bullish %:	77	78	89	2
Insider Corporate Sellers:	43:1	235:1	235:1	2.4:1

LACK OF INTELLIGENCE:

Yet another one bites the dust: Stockcharts.com website has seen fit to charge money for their weekly Investor's Intelligence Bull/Bear survey - unless found elsewhere, it will be deleted from this report. As I found out several years ago in my research for my CMT designation on Sentiment, the AAII is superior anyway which will remain in the table below.
By far the most extreme Indicator last week, surpassing the high number from the prior week, was the "legal" Insider Sales of officers - zooming from 163 Sellers to 1 Buyer, up to 235! This replaced the old multi-year high of 198:1. Ironically, the last time these numbers were so high was at the BEGINNING of the March '09 rally, and again in July '09 as the rally resumed in earnest.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	12638	12810	14093	6626
Nasdaq:	2827	2873	2861	1114
S&P 500:	1340	1363	1561	683
CBOE Eq. put/call:	63	58	96-10/08	46-1/03
VIX:	18.4	14.7	90	8.8
McClellan Osc:	(13)	46	108	(123)
McClellan Sum:	641	672	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	n/a	n/a	63	22.21
InvestorsIntel.Bear:	n/a	n/a	54.4	16
AAII Bull:	35.5	37.9	n/a	n/a
AAII Bear:	31.9	30.6	n/a	n/a
US Equity-1 week lag	n/a	(.7B)
Money Market Flows	(.4B)	16.8B
Baltic Dry Index:	1314	1254	11700	663
Bullish %:	78	82	89	2
Insider Corporate Sellers:	235:1	163:1	235:1	2.4:1

SELL IN MAY?:

Fresh off a vacation, there seems to be a toppiness in the air, at least technically: Point & Figure targets (although 1450 SPX is doable), previous highs are on the radar, and even a Fibonacci target looms.
The McClellan Oscillator has come off negative to challenge my +50 mark at 46; my cum. A/D total is at a new high, as are the Commitment of Traders' Small Traders, with Large still shorting.
Also tying a new high is my new Indicator - NYSE Volume divided by NASD, a speculative sign. Margin debt continues to rise over $300B, although money has shifted to MMFs recently.
A final extreme - CEO Insider Sales hit a whopping 163 to 1 last week, although they sold heavily in the March '09 rally inception.

MktSentiment	Last Week	Prev. Week	5 Yr HI	5 Yr LOW
DJIA:	12810	12505	14093	6626
Nasdaq:	2873	2820	2861	1114
S&P 500:	1363	1337	1561	683
CBOE Eq. put/call:	58	60	96-10/08	46-1/03
VIX:	14.7	14.7	90	8.8
McClellan Osc:	46	(30)	108	(123)
McClellan Sum:	672	480	1568	(1514)
Newsletter Surveys
InvestorsIntel.Bull:	n/a	n/a	63	22.21
InvestorsIntel.Bear:	n/a	n/a	54.4	16
AAII Bull:	37.9	32.2	n/a	n/a
AAII Bear:	30.6	31	n/a	n/a
US Equity-1 week lag	n/a	1.9B
Money Market Flows	16.8B	n/a
Baltic Dry Index:	1254	n/a	11700	663
Bullish %:	82	74	89	2
Insider Corporate Sellers:	163:1	n/a	198:1	2.4:1