The First Dip Is Bought

As with every correction in the past few months the first dip lower is being bought. We did not have a top where we went straight down, so this is par for the course. Signs of extreme complacency are abundant:
  • Rydex traders finally went aggressively long yesterday, after shunning the rally for the past few days.
  • As I mentioned earlier the II survey reached a new extreme.
  • The CBOE put/call ratio was very low yesterday for a down day.
  • The Citi secondary is still ahead of us.
Let's see how the bulls handle the second dip lower after the Citigroup secondary, which will likely be tonight.

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