Although the Nasdaq and biotechnology stocks were clear laggards this week, many sectors and indices (including the S&P 500) finished in the green. It has, indeed, been a while since I can recall a week where the S&P 500 Index finished higher, yet sentiment was so glaringly bearish. As an example, this noted sentiment survey was taken before today’s sell-off. I can only imagine the uptick in bears at the moment after today.
With that in mind, we have an interesting market picture headed into next wee. Be sure to check out my Weekly Strategy Session over the weekend for in-depth analysis.
True, the market finished up on the weekly but that is one ugly candle. I think downside is limited though, partly due to the sentiment readings you pointed out. Perhaps a decline to the 200 day will really get everyone into a tizzy. Have a good weekend!