"Many analysts feel that we are in a bear market or soon will be; we disagree," says Dan Sullivan. In his The Chartist, the advisor looks at several seasonal and sentiment indicators that remain bullish.

"The overall sentiment amongst individual investors is extremely negative, which in the upside down world of Wall Street is a very healthy sign.

"In their most recent poll, the bearish contingent of the American Association of Individual Investors had 55% in the bearish camp. This means that 55% of the investors polled by AAII expect the market to be lower over the next six months.

"The current bearish reading has only been surpassed on two occasions over the past four years. There were 58% AAII bears back on July 14, 2006. Over the next six months, the Dow posted a gain of 14.79%. And the AAII bearish contingent hit 56% on November 23, 2007, one day before the bottom of the October/November sell-off.

Continue reading Seasonality, cycle and sentiment indicators stay bullish

Seasonality, cycle and sentiment indicators stay bullish originally appeared on BloggingStocks on Wed, 30 Jan 2008 14:17:00 EST. Please see our terms for use of feeds.