It doesn't matter if you are bear or bull, but prolonged situations get people bored. Now it seems that some people are tired of this pessimism.
My favorite indicator for buying and selling equilibrium reveals clearly that the bear camp is decreasing. Bulls need some more power to take index levels higher. We will watching the green line from below chart very closely. Usually these lines have quite much inertia, so it is very likely that we see them connecting each other, which means positive time for index.
The cycles indicator tells the same story.
Trin value is increasing, which is positive sign.
52-week new lows reached almost the same levels than during Lehmann collapse. Even the whole situation reminds the same. So, rebound, and it is still possible to see even new lows being tested.
Fewer and fewer stocks were dragging the index lower. Now it would be time for a broader based short term bull market.
I have been calling the rebound for some time now. This rebound could not have to do anything with real economy, but who cares. I hope that the investors could get more positive.
