Chart of the Week 15 February 2015
Written by John O’Donnell, Online Trading Academy
This was originally Chart of the Week for 1/15/2015.
Over a year ago the bullish sentiment indicated by the Investiors Intelligence Advisors’ Survey reached a 27-year extreme high. In the year since it has not equaled that high but several times has reached peaks around the other high points in the chart for the past 20 years. This repeated indication of bullish sentiment should be taken as a potentially contrary indicator – that a market pullback of some significance could be in the offing.
Investors Intelligence Survey is discussed in the video following the Read more >> jump.
Note: This is not a reliable market timing tool: There are many sentiment peaks with no market decline following, but each peak should occassion a heightened sensitivity to the market because one always occurs before a decline A peak is a necessary but not sufficient condition for a market decline.
Source: YouTube