A number of Sentiment readings have reached levels which have previously indicated capitulation.
In the Investors Intelligence poll last week the ratio of Bulls to Bears fell below 1 meaning there are more Bears than Bulls. This often marks capitulation.
In the AAII public poll the four-week moving average of nett (Bulls minus Bears) has fallen to a level that has previously marked capitulation
The black line is the four-week Equity Fund flow (inc ETF) as reported by lipperusfundflows.com. This number reached a historic -$93.3 Billion as of last week representing a massive outflow of funds.
Our version of the Rydex Assets Ratio fell to 5.60 on Tuesday, the lowest since July 2016. Since the market low on 12/26 the ratio has fallen as the market has rallied. That’s encouraging.
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