Investor Sentiment: Leading Price Lower

Extremes in investor sentiment were seen over 2 months ago while the high in prices was seen 5 weeks ago.  Often times, indicators of investor sentiment precede moves in the markets.  After all, the markets represent the collective opinions of its participants.  At present, investors are viewing the markets unfavorably, but their opinions are by no means extreme.  In the absence of bearish extremes in sentiment, I would expect equities to remain under selling pressure.

 

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Investor Sentiment 3.20.11