Yesterday, Rydex traders moved to their largest bearish position for this move and the largest since the July 2009 bottom. I pointed out here and here that anecdotally it seemed that everyone was trying to short this market. The data seems to confirm that.
The only indicator that showed any optimism yesterday was the ISEE index. However, the CBOE put/call ratio showed continued put activity and the II survey shows the bearish ranks growing to their highest level since July 2009 and the bullish ranks shrinking. All in all the evidence points to high levels of bearishness which historically has been positive for future returns. Once the crowd is bearish they have already sold.