This pretty much says it all. Market psychology at its best. I love how many technical methods all converge and tell the same story….all on the opposite side of sentiment. Steer clear of herd and you will make money.

Dow

Remember this chart I posted on 9/25 when everybody said the markets were about to crash and that we should ignore bullish structure in the GDX because the S&P was about to collapse and that nobody wanted to buy miners with tons of debt? Well the miners bounced and the broader markets did as well giving us a setup which provides an infinitely better risk/reward short setup. I said at the time that the structure just didn’t look right for a market plunge and that we’d more likely get a rally to Dow 17K before setting up in a way that made more sense for a plunge. Well here we are. Ironically everyone is now bullish….;)

Dow