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Sentiment Indicators

Sentiment indicators are contrary indictaors, i.e. when the market gets extremely bullish or optimistic it is generally near a top (so sell the market) and conversely when the market reaches extremes of bearishness or pessimism then buy the market. (This makes some sense from a findamental point of view, if the market is at an extreme in bullishness, then everyone who can buy is probably alread long the market and with such extreme optimism the valuations are probably too high.)

Favorite on-line sentiment indicators: