Terrific Market Analysis
There are a bunch of indicators already at contrarian extremes and they would argue that stocks are close to a low. Here, ISEE put call, daily sentiment index and CBOE put call:
Sources: Contrahour, Chad Gassaway, Stockcharts
Then there are others which have either not washed out sufficiently yet or at levels whereby we might argue ‘done’ if just a bull market correction or ‘just getting started’ if we are now in a bear market. Here, Investors Intelligence sentiment, AAII sentiment, SP500 new highs new lows, NAAIM manager exposure, volatility, and the Arms index.
Sources: Yardeni, Stockcharts
If we consider the 5% decline across the last two days of last week, it suggests we are in the territory of a nastier correction or bear market.
Source: Ryan Detrick
Additionally, Friday was a major distribution day and one of four recent such events. Major distribution days near the highs are a typical…
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