Thursday, November 10, 2011

Still More Work To Do

The PPO of the equity only put/call ratio is headed back down toward the bearish extreme, but it has further to go.  It could reach the extreme level while the market treads sideways, or if the market continues lower.  The point however is that the both the McClellan Oscillator and the PPO of the CPCE are on their way to levels associated with bottoms, which bodes well for an end to the pullback in the coming days. 

From the point of view of the pattern, it looks like the pullback could end tomorrow.  However, if the triangle is in play it could take the rest of next week.  There is really no way to know at the moment.  One thing is for sure - there aren't many stocks with strong setups.  The best thing to do is to wait for the end of the pullback and a re-emergence of the uptrend.

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