Every alternate elliotwaver thinks we are off to 15,000 on the Industrials and 1500 or greater on the S&P500 due to some wave eccentricity or other…While I have not expected the rise to be as strong as it is…I have not changed my view and see every reason not to change it now as people are capitulating.
In fact, traders in the certain mutual funds nearly set a new record for assets in long funds versus assets in inverse funds in the major equity indexes. I think that people are in for a big surprise in that they are expecting a buyable pullback…I think that we are stepping into the one of the biggest declines that any of us have ever witnessed. It may begin tomorrow to next week…but sentiment and the highly extended state of the VIX which has been diverging nicely with our out of control markets and drivel broadcast on CNBC.
Sentiment on the NYSE is at extremes nearly never seen and highly indicative of complacent trading psychology.
