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. So 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.