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MARKET SENTIMENT
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Learn
how to effectively use market sentiment data to
your advantage
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Market sentiment data is a
reading of the attitudes of a sampling of leading market
advisors. It's not a perfect indicator, but it is
helpful.
Since the market usually turns
when everyone thinks it couldn't get any better, this
indicator is best used as an "overbought" or
"oversold" indicator. Or a "contrarian"
indicator.
When market sentiment reaches an
extreme high, the market is considered overbought, and a
downturn is likely.
When market sentiment reaches an
extreme low, the market is considered oversold, and an
upturn is likely.
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