• 266 days Could Crypto Overtake Traditional Investment?
  • 271 days Americans Still Quitting Jobs At Record Pace
  • 273 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 276 days Is The Dollar Too Strong?
  • 276 days Big Tech Disappoints Investors on Earnings Calls
  • 277 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 279 days China Is Quietly Trying To Distance Itself From Russia
  • 279 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 283 days Crypto Investors Won Big In 2021
  • 283 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 284 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 286 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 287 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 290 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 291 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 291 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 293 days Are NFTs About To Take Over Gaming?
  • 294 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 297 days What’s Causing Inflation In The United States?
  • 298 days Intel Joins Russian Exodus as Chip Shortage Digs In
  1. Home
  2. Markets
  3. Other

Sentiment

Technicians typically look for signs of excess bullishness or bearishness in sentiment polls to conclude markets have swung too far in one direction or the other. An extreme in bullishness is often followed by a decline in equities and an extreme in bearishness is often followed by a rally.

This year the American Association of Individual Investors poll showed an extreme in neutral sentiment (blue line) at the May high in the S&P 500 (orange line). Last week, neutral sentiment returned to the same level that marked the high in equities last May. It's unusual to see such a high level of neutral sentiment. It's as if there is loads of "sentiment" sitting on the sidelines waiting to become bearish or bullish. Last May, investors turned bearish. What happens this time should soon become known.

American Association of Individual Investors poll

 


Click here to get your copy of the December Lindsay Report.

 

Back to homepage

Leave a comment

Leave a comment