Investor Sentiment Check

The market has been trading in a fairly tight range since making its lows this morning. The SPX is hovering right around the 1340 level. Financials remain the weak spot, with Meredith Whitney just coming on CNBC and talking bearishly about them again. LEH is down nearly another -10% today. Ugly.

I still think the negative sentiment in GS sets up well for their report next Tuesday.

Here are how the sentiment indicators are looking:

• The volatility index (VIX) is up +2% to 23.66
• The ARMS Index is elevated at 1.09
• The CBOE put/call is also high at 1.10
• The ISEE call/put is extremely low at 73

The market is getting oversold, and sentiment is pretty bearish. I think the market should bounce in the near-term, but we sure could use some relief on the commodity front.

long GS