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Charles Maley

I agree that we are at LEAST going to pull back .....and perhaps resume the bear market.

-The Market PE is historically overvalued.
The Current PE is @ 17 on the S&P.

-The Stock Market is overbought when measured by the number of stocks above their 50 day moving average lines.

-Bullish Sentiment is high. The Daily Sentiment Index (DSI) hit 89%. This reading is the same as the Oct 2007 high.

-The American Association of Independent Investors, (AAII) registered 19% bears. This is the same reading as the all time high reading.

-The trading volume is poor. There is less volume on each push up.
Insiders are selling at 28 times the amount they are buying.

-September is traditionally a tough seasonal month. 17 out of the last 20 years have been down.

-Markets have rallied up over 50% off the bottom in 5 months. This is the farthest and fastest in history.

-The NASDAQ 100 has retraced over 50% of the decline off the all time highs.
The S&P Index has retraced 40% of the decline.

-The Aug 24th high was not confirmed by the 14 day RSI and MACD reading creating a divergence.

-The Shanghai index has dropped over 20% from the highs. This market bottomed before our markets and led the U.S rally up.

-25% of NYSE volume recently has been FNMA, Freddy Mac, and Citicorp, all low price stocks that the public buys. (speculation)

-The volatility Index (VIX) hit a new low on 8/25 confirming the bullish sentiment readings. This is a signal of NO fear in

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