Sentiment Indicators Flash Warning Signs of Potential Market Correction Ahead

Sentiment indicators are showing increased bearishness recently, suggesting a potential market bottom. However, rising long-term interest rates may override sentiment.

The short-term sentiment indicator is at an extreme bearish level last seen in July before a market correction. This suggests another correction may occur.

The long-term sentiment indicator confirms the bearish view, with room for more decline before reaching an extreme bearish level.

Surveys show investors growing more bearish. Measures of actual buying show high demand for bearish assets like puts.

The futures market indicator is at a level typically seen at bull market peaks, also suggesting a market top has occurred.