On Wednesday thestreet.com featured an article by Doug Kass (hedge fund manager) who is calling a top.
Kass: Market Has Likely Topped
They ran a poll and as of today 69% readers say they agree with Kass.
That sits very well with the sentiment seen in the AAII public poll this week where there are 34% Bulls (down from 51% two weeks ago) and 49% Bears (up from 33% two weeks ago).
An increase in public bearish opinion over a two week period where the market itself is up is usually bullish in the near term.
However, the AAII poll is at odds with this week’s Investors Intelligence poll (newsletter writers) who are very bullish, as discussed yesterday, and various other sentiment indicators that are getting overheated.
If a breakout could be sustained for a few days it’s possible that the remaining bears might throw in the towel just as we approach the early September time pivot.
Already today the intraday ISEE (equity only) Index has come in very high at 255 after twenty minutes trading and 232 after forty minutes trading. These are high numbers indicating a high number of Opening long transactions (Calls) relative to Puts so far today.