Chart of the Week: Sentiment Extremes vs S&P

Investors Intelligence weekly sentiment poll generates an
interesting data trail for contrarians: The bull to bear ratio quickly highlights excesses of sentiment.

Sentiment Extremes vs S&P
click for larger chart


Source: Decision Point

Since the bull market began in Oct 2002, the chart indicates
that bull/bear ratio readings greater than 3.0 have signaled excess bullishness. That suggests medium-term price reversal
and/or a consolidation over the next few weeks.

UPDATE: JULY 18, 2005 2:35pm

Decision point discovered their chart contained a a bad data point; DIsregard this chart . . . 


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