NFTRH Interim Updates

The October decline came after we had been noting various sentiment indicators were over bullish and Participation indexes were negatively diverging.  A hard decline followed and a bounce came as expected with pervasive end of the world bearishness gripping participants.

Now, the bounce has morphed to new highs in some cases and players have repaired their psyches as if October never happened.  For this reason, the markets are vulnerable to the faded, but still viable scenario of a November decline and  re-test of October’s bearishness.

Sentimentrader’s aggregated data show a situation that is close to what it was leading into October.

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Not to amp up the noise, but if the sector is going to keep doing an up one day, down the next, up the next routine around the 2008 low…