The first graph below shows the behaviour of the AAII sentiment survey during the 2000 - 2002 bear market, the second graph the same for the 2007 - 2009 bear market and finally the current maybe bear market.
In 2002 at the bottom there were only about 55% bears roughly what was seen a couple of weeks ago, but at the bottom in the OMG the world's coming to an end 2007 - 2009 bear market the bearish sentiment peaked much higher at about 70%, and 55% was hit numerous times as the market stair stepped down. So if you think we are currently in a smaller Teddy bear market, maybe the low is in, but if you fear a grizzly bear market, the worst in sentiment is still probably yet to come. You just have to pick your preferred flavor of bear to play. The awful thing is, who knows, maybe it's a Kodiak, or a Black or even a Polar bear market, and heaven knows how sentiment will behave. Thank goodness we have Elliott Wave to keep us on the right path ( /s ).
Regards,
Douglas
Edited by Douglas, 20 May 2022 - 09:22 AM.