Folks the largest, most knowledgeable, best capitalized traders in the world are bullish on stocks. These are huge firms with massive research departments.
The most predictive sector over the last several years have been in the NDX contracts. As you can see from the latest COT report the commercials aren’t even vaguely bearish yet. The NDX contracts are just barely net short. It usually takes 7-8 billion net short before an intermediate cycle tops.
Here we have the the biggest traders in the world bullish on the stock market. On the other hand you have Joe Sixpack retail trader armed with his stochcharts account and some indicators bearish. Who do you think is going to win this battle, and who is going to get squashed?
Click on the chart to enlarge.