As you can see in the chart below, the "market" reached a very oversold point recently (in the short-term, as measured by the McClellan Oscillator - blue line), which made a relief rally very likely. That has now moved the McClellan Oscillator back into neutral territory.
In the next chart, you can see the very bullish "dumb money" Rydex traders have quickly reversed directions and are too now back in neutral territory.
And lastly, as we look at those investors that have traditionally been very astute, we see our Gambill Insider Ratio has also moved from being very bearish as those insiders were selling their stocks to a less bearish position as they've started to warm up with a little buying.
I like the improvement; however, it's not yet enough to make me doubt my short-term (3-6 month) caution.
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