This is one part of an article that caught my attention. Helene Meisler who is a technical analyst that I read from time to time came up yesterday with an interesting point :
After reading that,I did my part of the job ! I looked back at the SPY in mid october 2007 in order to find something compelling on the chart that could be worth showing on ETF Coner . Well it happens to be quite intriguing to say the least. If you compare the SPY back then with the current one ,the comparison is quite compelling in the two charts below. Wouldn't you agree ??? :
Not only does the statitics match with ISE Call/Put equity readings of about 250,but so does the charts to a certain extent ! Furthermore,the divergence between SMH and the QQQQ's ,that i have spoted recently, is identical to that of October 2007 (CLICK HERE) i.e : The QQQQ's are making new highs while SMH are making lower highs! Finally this also confirms the post I've made yesterday (CLICK HERE) about the (D') decline being much bigger than (C') . Sure, this adds lots of fuel to the Bulls fire in their "candid" thinking that a new Bull market is around the corner ! Be ready kids,because 2010 is going to be FULL of surprises. Until then, as Bon Jovi would sing it , KEEP THE FAITH !
