Markets are working off the excess bullishness | stockbee

9/26/2012

Markets are working off the excess bullishness

Markets are working off the excess bullishness. A correction of few weeks will further reduce extremely positive breadth and allow for a good setup in to end of year if the gains hold.

The market had gone sideways post Fed decision rally. That period was marked by extreme positive breadth on Stockbee Market Monitor. Such extremes lead to corrections/ rotations/tops. If breadth deteriorates fast then a deeper correction will be deeper.

One of the better setups yesterday was the UVXY, Prohares Ultra Vix Short Term Futures ETF. It rallied sharply, going up 15%.


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