Currently (using the monthly candles) we await a bullish outcome in November based on a potential rising three methods.
Attachment 8374
We had the breakout above the previous high during the month of July. We still await the fourth candle (long and green hopefully) to satisfy the requirement of the candle pattern. Current red candles are price coming back to find support at the high of 2015.
Winner...I've used your posted chart and overlayed it onto the S&P500 chart below...The black line is the S&P index, the red line is MA200 and the primary trend line (broke 2 years ago) is blue....
The result wasn't exactly what I expected...I assumed the extreme positive sentiment to be the signal for a major bull market correction or cyclic reversal , however that didn't happen after the June 2014 sentiment peak...There is an eyeball correlation but the degree of the falls can not be predicted..eg comparing the degree of the two sentiment values with the degree of the two falls in the index) that of Oct 07 peak to Oct 08 trough and Jun 14 and Sept15/Feb16
Another interesting fact is with all the sentiment volatility in the last couple of years the index has moved only about +/- 10%..in other words, investing in the index those last couple of year would have resulted in uncertain mental stress and bugger all $$$ to show for it..
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