Investor Sentiment.

AAII data (which we have discussed in the past in context with investor inflows and outflows of cash into mutual funds) was out today with some of it's highest bearish sentiment readings in months. Bearish sentiment came close to 55% up from 44% as of its last reading. You have to go back to 2004 and before that 2003 to find readings that high. Predictably the market rallied hard today. This rally slightly relieved its over sold status. However, my indicators still show that there is room for stocks to rally. This is likely to not occur however until after the Federal Reserve meeting later this month.