Securities Research Services

Tuesday, June 05, 2007

Will this Time Really be different?

Market volume was light yesterday, and breadth was flat. Bullish sentiment remains on individual stocks, but overly bearish on the indices. This is the same type of mixed sentiment we have seen for weeks now, so it's not a very good indicator of what to look for today.

After six positive days in a row now, the likelihood of a pullback or a turnaround Tuesday is high today. The question is, will the pullback attract more dip buyers as pullbacks have been doing for months and months now, or will it turn into something more?

We don't know the answer to this question, but signs of a significant market top remain. Will this time really be different? Again, we don't know, but we have our doubts.

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