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  • Ryan Detrick believes he's found another contrarian indicator to add to a long list suggesting stocks should continue higher: The percentage of "buy" calls from the sell-side on S&P 500 components has declined as stocks have gained. Not to defend the group, but might this be a logical reaction to share values 20% higher today than a year ago? [View news story]
    The markets could still rise a little, but not by much... The highest the S&P 500 could go is about 1425. That is about 1-2% higher than what it's trading now.

    Almost every technical indicator is screaming "OVERBOUGHT". Look at the Put/Call Ratio... Overbought!.... Fast and Slow Stochastic... Overbought!... Bollinger Band... Overbought!... RSI... Overbought... VIX is below 14 and is screaming.... Overbought!

    Not to mention the fact that the Dow Transports Index has been declining while the S&P 500 has been rising the past couple weeks... That's a bearish signal according to Dow Theory... And the daily trading volume has been declining as the S&P 500 has been rising for the last two weeks...

    About 7 different technical indicators using a different analysis and coming up with the came conclusions.... OVERBOUGHT!

    I'm shorting the S&P 500 hard.
    Aug 14, 2012. 05:58 PM | Likes Like |Link to Comment
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