Mar 19, 01:53 PM

S&P 500 Hits Three Standard Deviations Below 50-Day Average as 28.3% Bulls Face 40% Bears and Job Market Concerns

Recent market analysis indicates a notable shift in investor sentiment, with the S&P 500 trading at levels not seen since the start of the 2022 bear market. Last week, the index traded three standard deviations below its 50-day moving average, marking the second-largest divergence since the pandemic in 2020. Investor sentiment remains low, with the Investors Intelligence Bulls index at 28.3%, continuing a trend of being below 30% for two consecutive weeks. Surveys indicate that bearish sentiment has outstripped bullish sentiment by over 40% in the latest AAII survey, a level of fear that surpasses 99% of historical readings. Concerns about the job market are also rising, as indicated by University of Michigan data showing increasing unemployment worries. The AIM Model, which previously indicated over 80% bullish sentiment, has significantly declined, reflecting the current bearish outlook among investors.

#Investors Intelligence Bulls #University of Michigan #AIM Model

Written with ChatGPT (GPT-4o mini).

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