I can’t personally say how good of an indicator this is, but I respect the work over at Trader’s Narrative,so I would be careful being to bullish at this time.
| And now, we are seeing the exact opposite with 51% bulls and only 24% bears, giving up a bull ratio of 68% – the highest for the whole year and the level at which we’ve seen the equity market react several times previously. As you can see from the chart, in recent years, we’ve seen this level reached only a handful of times: December 2009, May 2008, and October 2007. A quick glance at the chart of the S&P 500 will tell you that all of those instances were much better selling opportunities than buying ones: |
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