The newsletter sentiment survey is probably not the most important indicator at the moment, at least from a short-term market timing perspective. But longer term, and from a contrarian point of view, this chart is certainly favorable for stocks. The bears who have been in cash are now turning into bulls and putting their cash to work in the stock market.
This a new indicator from Bill Luby. I like it, and although it isn't time tested yet, it has worked recently. The indicator is now in the warning area that there is a market turn coming, maybe sometime in the next few weeks? The MACD looks about ready to bottom out as well and is in sync with the lows of the indicator.
You have to like this market to continue to rally as long as the VIX doesn't close above the 21-day. But it does look it is nearing the point where the market could start to stall. Another sign that there is maybe a couple weeks left for the market to rally before the selling pressure starts to pick up. Considering the NYSE weakness, this steady decline in the VIX is impressive.
This is another longer term indicator that doesn't say too much about the shorter term. Although 16:1 is a favorable number for the longer term, it is maybe at the high end of the recent range indicating some insiders are raising a little cash.
