Bullish Sentiment at Extremes, But Correction May Precede Further Market Highs
• The Master Sentiment Indicator shows extreme bullish sentiment, suggesting a possible near-term sell-off
• However, historically bull markets don't end until after a correction, which hasn't happened yet
• So we may see a short-term correction followed by new highs, with the bull market peak in August
• The MSI is made up of 9 classic sentiment indicators measuring investor emotion and activity
• While surveys show extreme bullishness, activity indicators suggest bears still active, tempering the sell signal