The RECORD CNN Fear and Greed Index low was December 25th, 2018 at TWO!
One year ago it was SIX!
Friday we hit EIGHTY... but not a record high.
I believe the best use of sentiment is had by watching for large changes.
(For example, see the spike up on October 2018 and the recent October 2019 bottom. Both led to market reversals.)
It seems to indicate a short term market unbalance, as when too many get on one side of a boat.
My guess is that news is a huge driver for now.
This coming week may see a pause, based on seasonality:
Average returns for the coming week have been mixed and weaker during the 3rd year of the Presidential Cycle than other years.
Edited by Rogerdodger, 03 November 2019 - 11:55 AM.