Maybe, but right now, if at all, a slow grinding down looks more possible. What happens in your opinion if we suddenly get a sharp $5 or more drop in crude prices? I think that a lot of sentiment indicators are no positioned for a dump. Look at the stocks above 10 dma, on Wednesday, we got an extreme reading, IMTO, and while the indices have continued a little lower, these have not. On Wednesday we also got a mild peak in the EPC above .8, it has been quite some time since we got that high. That is not high enough for a major run up (one prefers .95 to 1), but on the other hand we never got any readings in that series under .5 or so in recent months either. Also, the RSI are really getting into major oversold territory as well.
Reflecting this "optimistic view", my cash position is down to 8%, essentially "fully loaded".
