Long term sentiment wont capitulate
Short term gauges have retreated further due to trade fears. The CNN fear/greed indicator fell to 33 from 37. This number is now on the low side of the ledger. The NDR short term sentiment gauge fell to 42 from the mid 50’s, which is also a short term positive.
Intermediate term indicators remain stubbornly on the high end of their range. Investor’s Intelligence bulls/ bears was 47% bulls and 19% bears, while the NDR crowd sentiment number came in at close to 60. A major bottom tends to occur when the intermediate sentiment is oversold, which has yet to occur.
Short term bounces are coming in on a deteriorating tape. Investors should remain patient and wait for gauges to move into oversold territory.