Which is good, without this sort of fear of mass wouldn't be possible going up indexes, this is the basement of any massive long-side movements. If no fears, everybody is optimistic, it is not a good signal, because in this case all invetors has bought already, so had been eliminated the buying power. If there are no buyers, the market not able to go up. If bigger part of the mass is scared is good because later they will the buyers. Looks now statistically the sentiment of the US markets:
This week's AAII Sentiment Survey results:
Bullish: 29.0%, down 5.5 points
Neutral: 28.2%, down 9.1 points
Bearish: 42.9%, up 14.7 points
The bearish sentiment is huge, almost each send person waits for the downturn of the market. I like this high rates, it gives me good opportunity to buy.
Yesterday the US markets were snapping after seven days of losing streak, it was the longest since July 2012, the Dow +0.44% closed higher, rising 66.19 points to 14,963. The S&P 500 +0.86%, which closed up 14.16 points, to 1,656.
To the technical point in terms of Dow, the falling knife has grounded for a while. This broader backdrop remains technically constructive for bulls. Built up a support at 14.817 and recovered from that level. Technically it could retest the support today and if it close tonight above 14.970 would mean bullish signal for the following week.
Have a good weekend!