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I think I posted the potentially bullish divergence in the NYSE breadth
models last week which caused me to close out my shorts on Thursday evening and
day trade the long side on Friday. Another indicator I watch on weekly basis is
the credit spreads ... I watch them for signs of fear in the markets. We did
have a trendline break (up) in VIX last week and that bears close watching as
any further rise in VIX indicates increased risk aversion. We have bullish
divergences between the SPX break to a low and the credit spreads holding up. I
remain negative on the market, however with the market oversold and my models
holding up, I will likely be watching the long side for low-risk day trades on
the long side.
Earl
YAHOO! GROUPS LINKS
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