When it comes to market sentiment, there isn’t much neutral ground — that is in looking at the AAII survey, the bearish sentiment continues to elevated at levels we haven’t seen since after 2009. 

There are several factors technically and fundamentally that could promote a significant market bottom over the short run. Here are a few of the items… 

“Elasticity” and “resiliency” are terms that have not been applicable very often this year, but those two characteristics were in play yesterday. 

This year’s market action has conditioned investors to be wary of a day like yesterday when we see big gains among the major market indices…. 

Since its initial breakaway above the 34 level, the VIX hasn’t followed through and in fact has retreated back into its previous resistance range. 

Today marks the final trading day of the 3rd quarter and the last of September — historically the cruelest month for stocks — which is down ~6% among the major market indices. 

Yesterday’s broad-based rally had some technical “giddy up” but not enough to change the short-term outlook for the market. 

From a stock market perspective, Rosh Hashanah also represents an old Wall Street adage, “Sell on Rosh Hashanah and buy on Yom Kippur.” There might be some validity to that from a cyclical perspective. 

The latest weekly survey of sentiment among investors shows a bearish consensus has risen to its highest level since March 2009. 

This morning the VIX is trading fractionally above the intraday highs set last Friday.