it is important to consider excessive bullish/bearish sentiment,
to quantify price direction over the near term.
Right now sentiment,traders believing the market will go down,and putting their money behind it
by buying Put Options, rose to a 2019 high in September, and has continued to be elevated again in October.
Simply put, the market will rarely go along with the crowd of sentiment.
In fact more often then not, the market will do exactly the opposite, and continue to rise in price
climbing a proverbial wall of worry that will frustrate bears where it hurts them the most, in their bank accounts.
I'm not saying the market can't or won't go down.
But it won't go down, when a crowd of overly traders expect it to.
Sentiment over the past 2 years does seem to be heading fear-wards. Though I would say sentiment (and investors decisions) are lagging, and really no indicators at all.
I think all this tells you is that we're in a consolidation period.
Thank you for keeping me on my toes.
I have seen this CNN Fear and Greed Summary before
and it's truly informative.
There is going to be a big surprise coming..
that's for sure.
The element of surprise has yet to raise it's head.
Dragon or a grizzly, we shall see.
:) Thank you