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[kaiser soze]

Looking at the bullish percent index chart for NDX from 1996-2000, there is a trend where successive highs on the bullish percent were spaced either three-four months apart or nine-ten months apart. When the highs were spaced three months apart the bullish percent made a new high roughly ten points above the previous high-for instance mid 50s in spring 96 to mid 60s in summer 1996, 83 in summer 99 to 93 in fall 99.


http://stockcharts.com/c-sc/sc?s=$BPNDX&p=W&st=1996-01-01&en=2000-03-31&i=t14885942356&a=112052314&r=6162.png

The second chart shows the NDX bullish percent for the last three years. The peak of 63 in August 05 was followed five months later by ten point rise to 73 in Jan 06. This time, the bullish percent for the most recent advance has not yet reached the upper Bollinger Band but has already exceeded the prior peak of 76. The expectation is that the NDX bullish percent will top out at a minimum of 86 for this leg of the rally.

http://stockcharts.com/c-sc/sc?s=$BPNDX&p=W&yr=3&mn=0&dy=0&i=t38720969439&a=112052314&r=4661.png