Wednesday, April 21, 2010

Market Sentiment: Close to a Top

I don't use sentiment indicators much, maybe to justify a preconceived notion, but this bears watching.
The last high was almost exactly at the point the market swooned in January.
From Bespoke Investment Group:

Last week, we discussed the fact that bullish sentiment remained well below its bull market highs even though the S&P 500 was already there. This week's survey from Investors Intelligence showed that although bullish sentiment still isn't at new highs, it's getting much much closer. Bullish sentiment among newsletter writers currently stands at 53.3%, which is just shy of January's peak reading of 53.4%.