US Stock Market Sentiment Turning Contrary Bearish

What was good for the bullish goose (sentiment extremes in March-April) is going to be good for bearish gander as well.

Excerpted from the May 11 edition of Notes From the Rabbit Hole, NFTRH 862:

US Stock Market Sentiment

Dumb money apparently thinks that now that Trump is making a few sounds about making nicey nice with some trade partners, all’s well again. Dumb money is gulping down stonks even more aggressively now, while Smart money is fading. A degrading contrary-sentiment picture here.

A degrading contrary-sentiment picture here!

Here again are the 7 components of CNN’s Fear/Greed index. Put/Call ratio is labeled “fear”, but it is heading greedily south quickly. The same can be said of volatility.

This market is no longer sporting any sort of contrarian sentiment benefit.

Investment managers spiked with the bull activity in prices, as we knew they would.

Ma & Pa were creeping more toward bullish on May 7.

As noted above, over-bearish sentiment benefit, which was like shooting fish in a barrel back in March-April, is all gone. The stock market needed a shot of hope and relief, it got it, and now it’s on its own… and is becoming vulnerable, conveniently as major indexes tick the underside of clear resistance, as was also illustrated in NFTRH 862.

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