Is Sentiment Bearish Enough to Signal a Market Bottom?

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S&P 500 News

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Stocks Analysis by Ed Yardeni covering: S&P 500. Read Ed Yardeni's latest article on Investing.com

We asked Joe Feshbach for an update of his take on the stock market from a trading perspective. He said,

We’ve had a few improved readings in the Put/Call Ratio recently but only one day of a great ratio. I like to see a minimum of five days of ratios reflecting fear. We just haven’t had that. On the technology stock front, I believe these previous leaders have limited upside potential; even if some have sharp bounce-back rallies, they’d be tops made in broken charts. I would just be patient and wait for a more attractive entry level.

As Joe noted, the Put/Call Ratio jumped to 0.98 on Thursday, but it was back down to 0.75 on Friday "Insider buying picked up in the holiday-shortened first week of September as the S&P 500 worked its way toward a 4% decline. By far, the biggest buying happened across the energy complex. But there were also sizeable buys in tech, a household-name retailer, and a uranium miner.

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