Investor Sentiment Check
The market has attempted to bounce a couple times today, but has not made it back into positive territory. The Nasdaq was briefly in the green, but is now down again.
Investor sentiment is flashing some signs of elevated bearishness:
- The volatility indexes (VIX/VXN) are up again today
- The ARMS Index is slightly above-average at 1.10
- The CBOE put/call is elevated at 1.01
- The ISEE is around average at 145
I think the market will stabilized into the close. Beyond that, although the market appears to be struggling a bit, I am not expected protracted weakness. I think a sideways to slightly downward consolidation will set us up for another move higher, as the market continues to stairstep to new highs.