The market is taking a pause today, with the Nasdaq off about 0.50% at the time of this writing. The VIX (CBOE Market Volatility Index), measuring fear in the options market, is up over 2% right now. There are a few ways to interpret that action in the VIX, but I believe it indicates a lack of complacency on the part of bulls. At market tops, you would expect to see more of an emphasis on greed, rather than scrambling for protection.
I also noted for 12631 and Weekly Strategy Session members that last week’s rally was met more with a sense of disbelief on the part of many traders as opposed to unbridled euphoria and indulgence on the long side. Of course, gauging sentiment can often be a highly subjective endeavor prone to confirmation bias and cherry-picking. Price is the ultimate indicator. However, sentiment currently seems more consistent with a market still climbing a wall of worry instead of one that has reached a significant top.
2 Responses to Quick Note on Sentiment
$UCO’s, (i.e. oil) pattern looks like the Che$$NWine “Doji-String” in one of your recent videos.
Will it play out?
What(‘s the) catalyst(s)?
definitely basing out