http://therobinhoodfund.blogspot.com/
There was a small increase in the number of bulls to 37.6% from 37.0% last time. Some new bulls said the market decline had run its course and that it was again time to buy. There was a larger increase for the bears to 28.0% from 26.0% a week ago. Their number was below 16.0% in April, a negative reading showing too little skepticism. The move above 20% for the bears late May was a healthy sign as every buyer needs a seller and historically the stock market climbs a wall of worry. August 2010 ended with the bears at 37.7%, a reading 8.3% above the bulls. We may not see the bears above the bulls again over the short-term, unless the markets weaken considerably from here. With higher readings for the two groups above there had to be fewer advisors looking for a correction. They fell to 34.4%, from 37.0% a week ago. This group is currently short term negative but longer term positive. They wish to buy on a dip. However some have now shifted to bearish after the pullback from the recent highs. The correction outlook is often a weigh-station during a trip from bullish to bearish or vice versa.Last week the readings for the bulls and correction were at equal levels with the bears about 10% below them. We noted that prior data such as that was followed by at least tradable rallies. The difference between the bulls and bears contracted again to 9.6%. It was 11.0% the prior week and 24.8% two weeks before that. Corrections often end with the spread below 10% and sometimes near 0%. Bull market tops show differences near +30% while bear markets show the spread in negative territory
