While a sentiment indicator is a good gauge to follow, investors should also look to some other market tools. For instance, look to long-term trends. We use strategies based around the 200 day-moving-average and other indicators, which helps mitigate risk. Trend following is a long-term and dependable strategy. [An ETF Trend Following Plan for All Seasons]
“The stock market doesn’t turn on a dime,” Springer commented in the Reuters article. “But it could suggest that we’re within range of a sizable rally.”
For more information on following the trends, visit our trend following category.
Max Chen contributed to this article.