Tuesday, October 02, 2007

Dow Jones Industrial Index scales 14,000, but broad sentiment still bearish

The bulls are pumped about the Dow Jones Industrial
Index bursting through 14,000 yesterday. However,
although the absolute level of the index may be at new
all-time highs, the shallow depth of the broad market
sentiment gives investors plenty of reason to remain
sceptical of the future of this rally. Currently, the
Stock Trends Bull/Bear Ratio for the New York Stock
Exchange is 0.6, signalling that a vast majority of
stocks are trending in Stock Trends Bearish territory.
Over 50% of trending NYSE stocks are strong Bearish.
The aggregate distribution of the Stock Trends
indicators warns us of the fragile footing the current
rally rests on.

NYSE Stock Trends indicator Distribution:


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