Sentiment Indicators and Contrary Opinion
fIgure 23.4 Margin Debt Coinciding with Market Tops. (Data: NYSE)fIgure 23.5 Margin Debt Reacting at the 50‐Month SMA with Four‐Sigma Bands.
(Data: NYSE)
Courtesy of Stockcharts.comtrading activity of the under-informed who are presumed to be largely wrong in
their estimation of market tops and bottoms. High or extreme readings in this flow
of funds indicator are bullish for the markets while extremely low readings are
bearish.Member Short ratio This indicator tracks the amount of short selling by the
well-informed. It is the ratio of the difference between the number of shorts sold by
the members of the NYSE and the number of public shorts over the total number