More Fun With Fear & Greed Symmetry!

Stumbled across this on RealMoney.com today.

Jeff Cooper (world-famous technical analyst, quantitative trader, and former consultant to Cramer when Cramer was running his hedge fund) posted the chart at right today in his analysis of the S&P today. I just had to grab a pic of it and post it here as I just posted something similar a short while ago regarding the symettric action the market often shows as fear and greed plays out with the buying and selling of stocks.

24 days down of FEAR, 24 days up of GREED... what's next... (see yesterday's post for my near-term feelings)


SIDE NOTE: Also, another point Jeff Cooper pointed out in an article I read about 3 months ago--He says that his analysis has shown that any time a move retraces over 70% of the original move that ALMOST ALWAYS does the retracement go back to the start of the original move (100% retracement). This may be why the market is stagnating in and around this 1295-1300 area right now, and has been for the past several days with buyers/sellers showing not a lot of conviction to either breakout or breakdown. The SPX is near the 70% area between the May highest close of 1326 and the June 13 lowest close of 1223.

Here's the math:

1326-1223=103 total S&P range
70% of 103 is about 72 points.
1223+72=1295
Almost scary. But still just anecdotal at present time, since we're waiting to see how it all plays out.

Like I said, I think the market sells off here "a little bit" (as opposed to getting back to the old high of 1326 in the near-term) as my trading system signals are on short sale signals, and the market is in modestly overbought territory with SP and Naz RSI above 70.