Looking at figure 1, which is a daily chart of the S&P500, we note that the amount of assets in the Rydex leveraged and bearish funds arenow greater than the assets in the leveraged and bullish.
Figure 1. Rydex Leveraged and Bullish (green) v. Leveraged and Bearish (red)/ daily
Despite the short term over bought conditions and the recent 5 day lift in the equity markets on diminishing volume, the markets continue to chug higher. As has occurred since March, 2009, bearish positions have been losing positions. It doesn't pay to "fight the tape".
