Danger, Look Out Below!

Are the major indexes dangerously overbought above their 21-day moving averages again? 

 

  

And at a time when last week’s weekly AAII investor sentiment poll showed 50.9% bullish? That’s the highest level of bullishness and complacency since it reached 54.6% bullish in October, 2007 near the October, 2007 top of the 2003-2007 bull market. The other higher reading was 53.3% bullish on May 1, 2008, as the market ended a bear market rally and plunged into its unfavorable season leg down of 2008.

Other readings not quite as high, but at interesting times: The poll reached 49.2% bullish just prior to the Jan/Feb correction this year, and 48.5% bullish at the April top this year.

So, dangerously overbought? Just asking.

 

Sy Harding is editor of the Street Smart Report, and the free daily market blog, www.streetsmartpost.com.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.


Tagged In

home-us