Last week I ask….”Where did the Bulls go?”  Reflecting how bullish sentiment had dropped off ton of late per the chart below. (see post here)


The above chart reflects that a large percentage of investors have become doubters about the markets of late.  No tool is always correct, yet as I shared  last week per the chart above, (see post) if history was any guide, sentiment at these levels suggested that we were closer to at short-term low than a high.   

Today’s rally doesn’t a trend make…yet the situation below might suggest a little staying power could be at hand.

Are stocks and bonds facing a “key fork in the road?”    Sentiment might not be all by itself, per suggesting a short-term low could be closer than further away…see below!



The above chart reflects the majority of the time … when bond prices fall, stocks tend to rally!

With bond yields facing key resistance, the 500 Index on short-term support and so few of bulls showing up in the sentiment polls, the 6-week trend down is going to take a break! 

It was these conditions that led to the suggestion yesterday, that investors should start picking up defensive ETF’s that were on support. (see post here).

Ironic that TLT is down almost as much as the 500 index is up today!



How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past