Ever wonder why there are no super wealthy technical analysts among the Forbes 400? You know those purists who rely on trend lines, rectangles, head and shoulder formations, oversold oscillators, double tops, etc... Because on its own technical analysis is useless. TA has some merit but in reality it is very over rated. The market is a huge barometer of public opinion and human psychology. The bottom line about the stock market is that the only thing it cares about is future earnings, or in the very least, the prospect of future earnings. It was that way 100 years ago, that's how it is today, and that's how it'll be in 100 years (mercifully I won't be around to find out).
That said the market is very over sold and looked like it was going to hold its early gains until that wack job Janet Yellen opened her hole. Where do these people come from? What world do they live in? I guess I'll never know.
More important than these indicators are the sentiment readings. The AAII readings were Bulls 24% and bears 52%, which suggest a short term turning point is really close. Tomorrow investors intelligence's numbers come out.
That said the market is very over sold and looked like it was going to hold its early gains until that wack job Janet Yellen opened her hole. Where do these people come from? What world do they live in? I guess I'll never know.
More important than these indicators are the sentiment readings. The AAII readings were Bulls 24% and bears 52%, which suggest a short term turning point is really close. Tomorrow investors intelligence's numbers come out.
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