SPDR S&P 500 (SPY)

[Wishthiswasmyjob]

It's been a long time since we saw
this indicator this low...
Street sentiment has dropped into the gutter, and I understand.
Not alot of potential good news on the horizon, the debt and risk of higher taxes, the slowdown, the turning off of free money...
Yes, these economic things are all just noise, until they actually have an effect on the playing field, but the money has gotten very concerned about the outlook.
Look closely at the peaks here.

Sentiment

Top at the beginning of 2017, tops in 2018, etc...
This is a pre-indicator and runs a month or two early.
When this is falling, the market is also dropping, or at least is having a difficult time climbing and is consolidating.
Yes, we're watching everything very closely, hour by hour, but the view from a mile up has gotten very gloomy.
Here's the market during the past 5 years.

Spy

I know the correlation isn't spot on, but concerned money is cautious money and many times chooses to just walk away. The tide could really recede here over the next few months.