Summary & Plan for 7/7/2010--1038.50 S&P futures clear that level everything turns Bullish!!
There is a massive bullish divergence in the SPX cash to the summation index. That is an excellent sign that the market is going to trade higher. Looks like the XLE or oil patch is about to
take the lead in the market. (You buy weakness!)
The market is clearly over sold on many measures & above 1038.50 it is green lights for all time frames. Sentiment is now in a very good position with market vane at 39% bulls & AAII numbers at 25% bulls and 42% bears. The put call numbers are now 1.04 on CBOE 10 day moving average. The ISE numbers are very good with the 10dma at 100 and the Equity ratio is .69 which is getting close to bullish at .70. I really like this set up and with copper doing well the likelihood of a double dip recession is going out the window.
Gold is a sell in the Macro time frame and I consider it very bullish for the stock market.
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