MARKET ENVIRONMENT: by Woody Dorsey. Sentiment came in today at @ 51% Bullish. The sentiment on 6/27 after the heavy pop was 92% which showed that a lot of short covering was happening. The 0 % sentiment reading on 6/14 represented a good trading low but that is all. This market may is not what anyone thinks. It is still dangerous. That does not mean that it can’t go up though. July may have a real melt down. But you already knew that. There are dates for real lows if anyone cares but you don’t really need to know that yet.
NEAR TERM: Again: “Volatility continues. Near term patterns remain uncertain. As quarter end looms, there may another bout of weakness.” Here you are. Nasty into next week.
INTERIM TERM: The Interim profile still suggests that a durable low may not occur until the fourth quarter. Markets will keep toying with us until then. Remain wary.
DORSEY MARKET SENTIMENT: Sentiment has been overly optimistic for decades. I had said: “The 0% bullish “told” of Bounces. The big rally from there led to a 92% reading. Beware.” Sentiment is still at risk of eventually going down to reality.
MARKET SUMMARY: Repeat: “Equity Markets remain under secular corrective pressure. Wars never end well, nor will, 2022. Bounces are expected but not necessarily exactly when you expect them.
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