Before I go sleep off my Thanksgivikkah feast, I wanted to highlight some charts (courtesy of my friends at EWI – make sure you click on each chart to see the expanded view, and sorry for them not being in perfectly straight lines…) that tell a story of egregiously overbought extremes in bullishness that haven’t been seen since 1987. No, I didn’t mistakenly write 1987 when I meant 2007. It’s actually true that extremes of bullishness last seen 26 years ago, and not since, have returned. The first chart shows the Dow above the Spx, using two different measures of bullishness; both at 26-year highs. The survey for the Dow shows nearly 4 times as many bullish advisors as bearish ones; extraordinary!
Chart 4 shows the Dow Utilities having already fallen off their Spring ’13 highs in 5 waves, and having corrected in an Elliott, 3 wave, ABC pattern, which just rolled over this month, and is now plunging over 4% in the past seven days alone.
There you have it; the setup for an imminent rise in the dollar and gold, slide in Euro, potentially shocking declines in the Dow and Spx (but after quick, small, fake-out rises Friday/Monday).
Friday Pre Open by twwadmin