Take a look at Mark Hulbert's latest column on MarketWatch.com. He observes that while the averages have traded in a narrow range over the past 4-6 weeks short term stock market timers have grown increasing bearish. This has bullish implications for stock prices.
This observation is consistent with the message of the Rydex Cash Flow Ratio which I discussed a short while ago.
The other interesting thing about the behavior of the stock market averages since January 2004 (a period of 19 months !) is that we have seen many, sometimes extended, periods of essentially sideways action puncuated by a brief, sharp advances or declines. This sort of behavior is the main identifying characteristic of George Linday's Three Peaks and a Domed House formation. I last commented upon this here where I said that it implies that the market will rally into December of this year. This too is consistent with the bearish condition of short term market timer sentiment.