This measure of sentiment is telling has created a falling wedge or channel, however you want to look at it, and the upper boundary line has been a sign of psychological support. Perhaps sentiment will hold for now and a bounce will come, but we've got to be aware that this pattern isn't sustainable long term.
Today was a very very bloody day in the NYSE. It market the lowest level of the rally starting at the Obama lows in Nov 2012. Note the comparable days of massive selling pressure in the NYSE. If this pattern is to follow suit we can look for a minor lower low soon to start a leg higher.
Before trading on these levels we have to keep in mind the scope of these conclusions. The signals are all within the rally we've seen over the last 15 months. The markets change (the overall market character has changed a ton in the last month) and these patterns change whenever they feel like it.
Good luck and good trading!
