Feb. 27th was preceded by the highest reading all year.
But before that and even now, the bulls are out to pasture as the markets make new highs.
The only year like this which I can see is 1998-99.
Then and now, bulls can't get above that red line.
AAII dropped to 51 this week, sentimentrader.com is still neutral.
From TOR's post below:
"But how have investors and Wall Street reacted? By piling on more pessimism. The New York Stock Exchange (NYSE) recently reported short-interest activity for April, revealing a jump to another record. In fact, from March 15 through April 13, the number of shares short on the NYSE increased by 4.6 percent. During that same time frame, the SPX gained nearly 4.4 percent.
A bit of history should give you healthy perspective on the current short interest situation. The NYSE short-interest ratio (total short interest divided by average daily trading volume) stood at 3.7 when the SPX peaked around 1,500 in early 2000. This is a noteworthy fact as the SPX closed Friday fewer than 16 points away from this round-number area. (As a side note, the equal weighted SPX crossed above 2,000 this week and is trading at an all-time high). With the NYSE short-interest ratio currently at 6.1, this is consistent with the level of shorting activity that took place during the mid-to-late 1990's rally in the market and also the level of shorting activity that occurred as the market carved out its bear market lows in 2002-2003. Each of these periods were favorable for accumulating stocks.
Coming into last week, small traders of S&P futures netted the largest short position in the past five years. Furthermore, large speculators in E-mini S&P futures (which some suspect are hedge funds) also netted the largest short position in five years."
Edited by Rogerdodger, 29 April 2007 - 10:05 PM.
