Why Recent Selling Climax is Good News for Bulls in Short-Term

The chart from chartcraft.com below shows that stocks comprising the NYSE composite have been in the midst of a selling climax. That historically indicates that they are set for a rebound, at least in the short-term. Why? Selling climaxes occur when stocks make a 12-month low but then close the week with a gain. That…

Investor Market Sentiment Indicators Suggest Rebounds are Likely in 2018

The CNN Fear/Greed is at 8, indicating there’s a lot of fear among investors. The Ned Davis Research (NDR) short-term gauge is at 23,  suggesting the market is oversold. Used as contrarian indicators since investors historically are wrong, that means we should be expecting some market rebounds following the recent big selloffs that devoured gains…

Intermediate-Term Sentiment Indicators Flashing Sell Signals

Intermediate term sentiment is quite negative. Investors-intelligence Bulls/Bears, which monitors attitudes of more than 100 market newsletter writers, is at 60% bulls and 18% bears. That’s very negative from a contrarian point of view. The difference between the bulls and bears is now at 42, which is an extreme warning sign. The Ned Davis Research…

Major Bank Indicators Signal Bear Market Trouble Ahead

This indicator, designed by Goldman Sachs to signal bear market risk, is at its highest levels from the last 50 years. It is based on measures of equity valuation, growth momentum, unemployment rates, inflation and the yield curve. It attained peaks towards the end of the internet bubble and near the end of the housing…