A 'confused, drunken walk'
The market has no clue where to go or how to get there. That's why sentiment is turning neutral.
Apparently, the "correction," if you can call it that, has done nothing to make investors more sure-footed one way or the other.
Before the correction, a survey by Investors Intelligence showed a 52% bullish reading. Now, that's dropped to 35.6%. The bearish percentage is at 27.8%.
With this much confusion, it's no wonder that neutral sentiment is on the rise. In fact, it's hit a six-week high, The Pragmatic Capitalist reports.
Almost 30% of investors think the markets will remain flat over the next six months, according to TPC.
All in all sentiment has shifted back to a neutral reading as the markets stabilize. This high volatility in sentiment is a clear sign of utter confusion on the part of market participants and creates a landscape that is ripe for dramatic moves in either direction.
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A light news day combined with heavy technicals weighed on the market.
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