From Business Insider:
Goldman Sachs is warning that investors might be too bullish.
In a note to clients on Monday, Goldman equity chief David Kostin notes that the firm's sentiment indicator is at 100, the highest possible reading for the measure.
As Kostin writes:The major indices look to open down around a third of a percent.
Our Sentiment Indicator currently stands at a maximum possible reading of 100, suggesting the S&P 500 has near-term downside risk during the next six weeks. The prior week’s reading also equaled 100. An extreme positive reading (above 90) suggests the S&P 500 has a high probability of falling by roughly 3% during the following six weeks.
The SI ranges from 0 to 100, with readings below 10 suggesting low positioning, and readings above 90 offering a warning sign that professional investors may be unduly bullish. Extreme positioning is a strong contrarian signal for subsequent equity performance....MORE
