Thursday, January 19, 2012

Bullish Sentiment Approaching Extremes

Wanted to record that Jason's sentiment indicators are getting pretty stretched toward bullish extremes--both near term and long term.

When sentiment gets lopsided, then a trend reversal often approaches.

Couple that with Demark indicators signifying trend exhaustion on multiple timeframes, and it seems time to get cautious.

Personally, I added a bit to my index short positions today.

position in SPX

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