I had an interesting experience this past weekend. Yes it is anecdotal but I want to share it with you anyway.
Each Saturday morning I go through my indicators and charts and often tweet out several of them, usually with no commentary, just the charts. Yes I freely admit I am looking to see what the reaction to the charts is so perhaps I can see if there is a bias out there. Sometimes it works, sometimes it does not.
This past Saturday I posted these two charts, one of Nasdaq with that broken uptrend line and one of the Russell 2000 with its broken uptrend line. You can clearly see, chart readers would not like these two charts. I mean, broken uptrend lines that weren't even able to be tested with a proper throwback rally after breaking, is definitely not good from a pure chart perspective.
The chart of the Nasdaq got (as of this writing, on Saturday afternoon) 18 retweets and 62 likes. The chart of the Russell 2000 got 22 retweets and 49 likes.
Then I posted this chart, of the Market Vane Bulls. This is a weekly survey that I do not write about much because it doesn't tell us much most of the time, although it did an excellent job of showing too much bullishness in January. It has now come down to 55% the same place it was at the spring lows this year. Oh sure, the 2015/2016 lows are lower at 50% but surely I expected some bulls out there to glom on to this one.
The Twitterverse was clearly not impressed. This chart received 2 retweets and 6 likes. That is it.
Perhaps I am making more out of this than I should but I find it curious that the majority seemed to gravitate toward the bearish charts and barely noticed the (maybe) bullish one.
And the charts do look ugly. I have said this many times in the last few weeks. And we have a market that got oversold and managed one big up day followed by a whole lot of leaking back down afterwards.
Friday's action was interesting though. The Russell 2000 lost about 1% and breadth was flat on the day. It's hard to remember the last time breadth outperformed like that. If we were matching statistics against the Russell we would see there was a lower closing low for this broad small cap index and yet the number of stocks making new lows did not expand. The 10-day moving average of new lows has rolled over. In September the moving average was rising daily.
Even the Oscillator moved up on the day since we're oversold.
Sentiment-wise the options ratios continue to be up, although the 10-day moving average of the put/call ratio is desperately trying to roll back over. I will wait while you get a high powered magnifying glass to see it.
Perhaps this coming week we'll see the Investors Intelligence Bulls back into the mid $40s. It certainly feels as though that's where it's headed.