Saturday, December 25, 2010

Contrarian Indicator Flashing? Bullish Sentiment at a Six Year High

David I. Templeton submits:

This week's release of the American Association of Individual Investors weekly sentiment survey shows bullish sentiment increased over 13 percentage points to 63.28%. This is the highest level the bullishiness reading has reached since November 18, 2004. Shortly after the November 2004 period, the 8-period moving average reached almost 57% and the market experienced a small correction of about 3%.

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