Sentiment Fails To Hold Up

Tobias Levkovich’s latest Pulse update shows how market sentiment continues to crash. Citi’s ‘Panic/Euphoria’ model slumped further into its ‘panic’ zone.
[image url="http://static.businessinsider.com/image/4b8b85287f8b9abb1edf0100/image.jpg" link="lightbox" caption="" source="" alt="Chart" align="left" size="xlarge" nocrop="true" clear="true"]
Meanwhile, their second sentiment model, which serves as a sort of check on the first, continues its rapid deterioration.
[image url="http://static.businessinsider.com/image/4b8b853a7f8b9a6633a00300/image.jpg" link="lightbox" caption="" source="" alt="Chart" align="left" size="xlarge" nocrop="true" clear="true"]
Thing is, there’s nothing we hate more than bullish sentiment that goes straight up. Also, stocks are holding up remarkably well despite the recent sentiment nosedive. Thus we see negative sentiment as a good thing — if it recovers, stocks could rebound nicely.

(Via Citi, PULSE Monitor, Tobias Levkovich, 26 Feb 2010)

Business Insider Emails & Alerts

Site highlights each day to your inbox.

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