One nice thing about Bloglines is that you can drink from the blogging firehose at whatever time and pace you desire. In my case, this means a week or so of posts from the 149 blogs (see the link above if you are wondering how this is possible) for which I subscribe to their feed. Sure, my head is spinning and my brain probably looks like a python that swallowed a hippo, but it has been a great way for me to get back up to speed in a hurry.
Among the many posts I came across today was one from a blog I have yet to feature in my links: Stock Trading Update. In a post from earlier today, the London-based Securities Research Services team evaluates the current state of the market as follows:
“We have been reading whispers of a major market top forming, but the long term charts just do not support this at this time. Likewise, overly bearish sentiment does not support this either (remember, market tops are not built out of fear, but on enthusiasm). Most likely, based on the charts, we are looking at another few weeks to flat, to slightly negative trading, followed by a resumption of the major trend.”
Frankly, I couldn’t have said it better myself and if you study the chart below you can see that since the advent of the VIX, tops in the SPX have not coincided with spikes in the so-called fear index.