Here is another index formerly well set up from a bearish perspective, making a monkey out of former bear cases, including mine. Small caps leading (along with several other indicators we look at in NFTRH) now say we are in the wide open plains where the bulls come out to play.As the most important macro indicator (long term treasuries) keeps us in suspense as to what comes next, the silly, greedy, carefree (and thus far correct) bulls frolic, play and ply their trade.
I'll have to do some thorough checking of sentiment this weekend. Manic bulls became fairly bearish quite quickly on the the last correction and that was not err, bearish. We may have to wait until Full Froth '10 climaxes (or double tops) before getting actively bearish again. The process could play out in a very short time period or it could persist, depending on how quickly sentiment comes back toward extremes.
Anyway, here's the Russell 2000 chart, updated.
