Market Sentiment is Still Too Frothy!
Market sentiment is still too frothy.
Not much has changed in the last week.
The spread between the bulls and bears has come in a bit. It’s gone from 43 to 32. This is normal as a small correction has started to make some folks nervous.
However, this is likely just a start to the cycle of fear. We are nowhere near the levels of pessimism needed to mark a meaningful low.
Market sentiment is still too frothy
As our last two Chart’s of the Week discussed, market valuations and price action suggest there’s a lot of risk in the markets right now.
Can the market rally from here?
Of course. However, when you add sentiment that is too bullish into the mix with the other issues we have recently highlighted, any gains from here will likely be wiped out.
There’s almost surely going to be a more favorable spot to buy stocks from here.
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