A few weeks ago (in a post linked here), we mentioned a few "flies in the ointment" in regards to the current conditions (at that time) of our Psychology Composite. This morning I would like to share another indicator we've added to that list following the rally in stocks off the May/June low - the Gambill Insider Ratio.
The "smart" corporate insider buy/sell ratio came down and gave a positive signal in May and June as the market corrected. But you can see (in the chart above) that this buy/sell indicator has now weakened back into the neutral zone. This IS NOT negative, but often, before a final low is made, we see at least two signals deep into the green zone. So...maybe so, maybe not, but another additional pull-back in the market here would likely produce that historical echo signal that would be a big positive.
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