Monday, June 27, 2011

S&P 500 Sentiment Negative

Based on the chart below, at this time it appears that the S&P 500 may get a short term market bounce (although not clearly indicated yet).  The long term sentiment still appears to be highly bearish.  Expect the next buy peirod to be triggered towards the end of third quarter 2011 or beginning of the 4th quarter.


This chart displays a measure of market sentiment (as measured by the S&P 500) on both an intermediate and long term basis. I have highlighted where historical buy, hold, and sell zones were indicated by the signal lines. One can use the bottoms of the intermediate signal line (blue) as indication for ideal periods of cash infusion in a held position.  That being said, the peaks of the blue line can also indicate ideal periods for transfers out of a position.