2007-3-20 2006-10-31 After such a strong move off of the July lows it seems like an appropriate time to discuss how our sentiment indicators have reacted to the rise. The public short sales are still extremely high and the member and specialist short sales are surprisingly low, despite the advance. This is very bullish and suggests that the rally is just beginning. Other sentiment indicators such as the Market Vane, Investor's Intelligence, and AAII surveys are showing an increasing amount of bulls. Even though we are not at extremes in any of these surveys, we are becoming closer to an extreme level, which would suggest an oversaturation of bulls and too much optimism in the market. This would be very bearish for the market. 142499 text/html http://www.nasdaqwizard.com/midweek092706.html 1.0 EN index,follow After such a strong move off of the July lows it seems like an appropriate time to discuss how our sentiment indicators have reacted to the rise. The public short sales are still extremely high and the member and specialist short sales are surprisingly low, despite the advance. This is very bullish and suggests that the rally is just beginning. Other sentiment indicators such as the Market Vane, Investor's Intelligence, and AAII surveys are showing an increasing amount of bulls. Even though we are not at extremes in any of these surveys, we are becoming closer to an extreme level, which would suggest an oversaturation of bulls and too much optimism in the market. This would be very bearish for the market. text