Investor Sentiment Indicators Climb Even Higher into Overbought Territory
Investor Sentiment Indicators Climb Even Higher into Overbought Territory. The past week’s investor market sentiment indicators are showing investors are becoming ever more optimistic about market direction. Therefore, from a contrarian point of view because the average investor is historically wrong about where the market is headed. We once again suggest you lighten your portfolio.
The short-term CNN Fear/Greed Index moved up to 62, climbing higher into greedy territory from the previous week. The Investor Intelligence Short-term Composite Indicator –-highly regarded by sophisticated market timers — moved higher into overbought territory to 82 from below 80 the week before. A reading over 70 means the general index has become overbought.