Is A Bear Market Rally Approaching?

This week the % of Bearish Investment Advisors exceeded the % of Bullish Investment Advisors by 10% (point A) which going back to the mid 1990's has been a rare occurrence.  In fact there have only been 4 occasions when the % of Bearish Advisors has exceeded the % of Bullish Advisors by 5% or more (points B).  Furthermore in each occurrence a strong oversold rally eventually developed in the S&P 500 with returns ranging from 24% to 38% (points C to D). 

Based on this research it's certainly possible we could see a significant multi week Bear Market Rally develop before much longer.   Keep in mind I'm not saying the Bear Market is done however don't be surprised if the major averages can hold support at or near their January 23rd lows next week that a significant bounce may develop.

If interested in receiving our Free Weekly Newsletter by email you can signup at http://www.amateur-investor.net/Newsletter.htm

Bob
Amateur-Investor.Net< /p>