Overly Bullish Sentiment Indicator is a Negative for the Market
Overly bullish sentiment indicator is a negative for the market. We use investor sentiment as contrarian indicators for determining the direction of the stock market. The latest reading from SentimenTrader’s Smart Money/Dumb Money shows the indicator going from extreme pessimism on market prospects before the big surge this year to the present bullish level, which is a sell signal. Or at the least, a signal to be very careful..