A day or two before the low in August I mentioned how AAII sentiment was showing a 2:1 ratio of bears vs bulls which was contrarily bullish for the market. Now we are seeing the exact opposite. AAII sentiment came in today 2:1 bulls vs bears which suggests a market top is immanent.
As I said before, it's possible the market may do a headfake breakout above this trading range however AAII sentiment strongly confirms my suspicions about the sustainablilty of this rally that started a few weeks ago. It also suggests the market is ready to top out right here right now. The rydex ratio is not yet confirming though but the message is clear.....be on guard.
Amen to that!
ReplyDeleteFascinating how fast AAII sentiment swings.