Tuesday, October 17, 2006
We could be facing a "turnaround Tuesday" today as indices looked a bit tired yesterday. We need to warn traders to be slow to turn bearish however. Dip buyers have been as aggressive as we have seen in some time and there are no signs yet that this is about to change. Breadth remains good and our scans continue to reveal a bullish underlying picture. The tech sector looked especially tired yesterday, but bears were aggressively buying puts at rates nearing 5-1 over calls. With so many betting on a top here it is unlikely that a top is in just yet.