Profunds index and sector trading

[Gizmo]

87.53 support could stop the drop for a partial retracement to at least 91.28 and possibly to the declining tops TL. A 4 to 4 1/2% rally then another leg down to 80/81.

Sentiment is quite bearish.

Darkness before the dawn?

By Mark Hulbert, MarketWatch
Last Update: 12:01 AM ET Nov. 4, 2005

ANNANDALE, Va. (MarketWatch) -- The bond timing newsletters I track at the Hulbert Financial Digest have never been more bearish than they are right now.

And that, according to contrarians, is bullish for bonds.

Consider the latest readings from the Hulbert Bond Newsletter Sentiment Index (HBNSI), which reflects the average exposure to the bond market among a subset of short-term bond timing newsletters. As of Thursday night's close, the HBNSI stood at minus 67.4%.

That means that the average of the timers included in this sentiment index is recommending that two-thirds of the amount subscribers have allocated to the fixed income market should be invested on the short side of the bond market. That's an aggressive bet that the bond market will decline, and that interest rates will rise.

Contrarians believe that the markets rarely accommodate the majority, so this extreme bearishness is bullish.

More at http://www.marketwatch.com/news/story.asp?dist=¶m=archive&siteid=mktw&guid=%7B7F002CAC%...

And from BCA Research http://www.bcaresearch.com/public/story.asp?pre=PRE-20051101.GIF