The "dumb money" has become extremely bullish, and this is what one would expect when prices rise. However, it is within the current extremes of bullish sentiment where the ascent of prices is likely to slow down. I think this is a given over the next couple of weeks. What hasn't been decided is whether this current move over the last 8 weeks - from the bottom of the range to the top - will develop into a full fledged trend move. This will be characterized by the market continuing to rise despite the overbought and over bullish conditions. The market is at or nearing that juncture where overbought becomes more overbought, and it is within such extremes of bullish sentiment where new bull markets are launched.
The current bounce has followed the expected script.
"Insider activity slowed dramatically as more trading windows closed ahead of Q3'10 (or comparable period) earnings announcements. There was, however, notable selling in the Energy and Consumer Discretionary sectors and some interesting buying scattered about the Industrial Goods and Consumer Staples sectors. Transaction volume will remain constrained until earnings season kicks into high gear and then we should see a flurry of activity and, we hope, some interesting signals heading into the end of the year."