Over the last eight days, the stock market has been hit very hard as the S&P 500 is down 5.85% and the Nasdaq 100 has lost 6.23 %. That eliminated the chances of a month-ending rally as the selling spread last week to even the strongest market-leading stocks and ETFs. The earnings from a few of the tech giants did not help as traders were very difficult to please even when earnings met estimates. Some lowered their guidance and as a result, some stocks were downgraded.
The bullish sentiment, according to the American Association of Individual Investors (AAII) has continued to decline. It peaked at 49% on August 2nd and came in at 29.3% last week after a September 27th low of 27.8%. The bearish % rose to 43.2% which was the highest reading since May 11th. For many years a bullish % reading in the low 20% often coincided with a correction lows.
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