I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Thursday, May 19, 2011

May 19

Current thoughts:

Also, there has been a lot of hoopla recently about the strong shift within the last couple of weeks from very bullish sentiment to very bearish sentiment. And while it is a relevant and useful short term observation, it bears being put into perspective.

And we are still on the much more bullish side of long term sentiment right here:

Again, do not misunderstand what I am saying. I am not saying this is "THE TOP". But I do think we have a significant top in the formation process. I am not expecting a crash, more like consolidation for the next year or so.

For a good discussion on some more long term sentiment analysis, see this post: The BPSPX and the Secular Bear Count
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