This is an excerpt from my weekly market outlook post at ElliottWaveTrader.net:
For the week ahead, there is little in the mood pattern in the way of bearishness. The mood pattern combines a "rose colored glasses" component in which news or data will be seen in the most positive light possible, and a "denial" component which will facilitate brushing off any bad news. Perhaps people are wanting to keep a hopeful outlook as the holidays approach (U.S. Thanksgiving).
The main take away from the weekly forecast charts (at Elliottwavetrader.net) is that the market continues to be seriously overbought. The extent of the divergence is beginning to be concerning. When this "rubber band" snaps, it will not be pretty.
Qualitative Analysis Notes: This week's identified social mood components: 1) Low Manic/Vulnerable (with inversion) => "Rose colored glasses;" seeing news in a positive light. 2) High Expansive/Controlled (with inversion) => denial, delusion.
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