Sentiment Sours While Equity Markets Fail to Consolidate

Just a quick post here while I am stilling moving in my new place and unboxing...

Strangely enough, market participants have become quite worried about the future of the markets while the market themselves have failed to consolidate in any meaningful manner.

Both the AAII sentiment measure is now balanced with a 50% bull/bear ratio and the equity put/call ratio is also at a 3 year mean.

If sentiment were to deteriorate further and markets fail to consolidate drastically, it would become quite a bullish signal for a market that is still extremely overvalued. It seems probable that we will have a repeat of 2007 when the markets soared until July before toping and crashing later. So I am not excluded another leg up from here.

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