Not Enough Bearish Sentiment to Suggest an Intermediate Stock Market Bottom
We use investor sentiment as contrarian indictors to ascertain stock market direction. Bullish sentiment in the Investor Intelligence Bulls/Bears poll of market newsletter writers dropped to 42.7% from 49% the previous week sparked by the recent correction. However, bearish sentiment barely moved, going from 17.3% to 18.5%. Bearish and bullish sentiment historically need to be around parity before we can confidently call an intermediate market bottom.
Chart provided by www.investors-intelligence.com