Citi: Sentiment Won't Stop Crashing And We're Approaching 2009 Lows

Citi Investment Research’s two sentiment measures continued to nose dive last week according to strategist Tobias Levkovich.

Both the ‘Panic/Euphoria’ model and ‘Cyclical Expectations’ model are now approaching their 2009 lows.
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According to the firm, this implies further near-term pressure for equity markets.

Citi: Our Cyclical Expectations Model (CEM) declined further this week, suggesting the equity markets may continue to face near-term pressure.

Still, for long-term investors we’d read it another way — U.S. stocks have shown resilience in the face of falling sentiment due to China tightening, U.S. deficit, and European sovereign debt fears. The S&P 500 is down only 3.6% from its January 19th 52-week high, despite this:
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(Via Citi, The PULSE Monitor, Tobias Levkovich, 19 Feb 2010)

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