BarroMetrics Views: A Possible S&P Top? (II)

To add to my comments yesterday. One of the measures I use to assess the health of a market is ‘consensus surveys’. The two I like are: Whisper Numbers and Sentiment Trader.

Whisper Numbers ihas a neutral reading but is showing sentiment divergence with price. In other words, the sentiment at the current high is below the sentiment of the previous 18-day swing high (monthly trend).  This is akin to an oscillator-price divergence - and it’s a bearish sign.

Sentiment Trader is showing a bearish signal with Smart Money below 40 and Dumb Money above 60.

But there is no escaping the fact that currently the S&P is illiquid and has an upward bias. I believe this state of affairs will continue until after Dec 31 2009 - just a few days away. Let’s see what the 2010 brings.

Refer this blog post to a friend or colleague…