- The 30 day moving averages of the put/call ratios are still not showing the excessive enthusiasm they did in January. This is more of an intermediate term indicator.
- The 30 day moving average of the advance decline line won't be overbought until the middle of next week. It was overbought at the January top.
- The spread between the bulls and bears in the Investors Intelligence survey is at 25%. In January it was at 35%.
- Corrections tend to start at the end of January when the market has been rallying for a while. We are in the heart of tax refund season and a seasonally strong part of the year.
The Differences Between Now and January
In an earlier post I showed how the put/call ratios are looking a lot like they did at the January top. In this post I wanted to go over the differences between now and January.