Market Sentiment Fails to Give a Buy Signal
Market Sentiment Fails to Give a Buy Signal.
As mega cap stocks took it on the chin for a large part of September, bullish sentiment subsided a bit.
But, not enough to mark a meaningful low. Certainly not likes the ones we saw toward the end of 2018 and in March, 2020.
As we pointed out in the most recent Chart of the Week, short-term indicators we watch became very oversold. As a result, we expected a bounce.
We are getting that bounce now. How high can it go? It’s anyone’s guess.
However, until market sentiment swings the other way and becomes extremely bearish, the odds favor any gains from here will simply evaporate.
There’s almost surely going to be a more favorable spot to buy stocks from here.
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