Investors Intelligence Survey

Confirmed! The outlook is extremely gloomy.

As expected Sentiment has worsened. The July 8th Investors Intelligence #s are % Bulls 27.4, %bears 47.3, B/B spread -19.9, B/B ratio .58. Bespoke Investment Group mentioned in Barrons that the market is poised for a 5% snap back rally. I'm thinking along the same lines from a trading perspective. These #s are just so darned bearish to ignore.

On July 1st %Bulls 31.9, %Bears 44.7, B/B spread -12.8, and B/B Ratio .71.

Investors Intelligence (II) July 1st visuals. As you can see, the sentiment readings extremely gloomy. All that means is that the 140 financial newsletter writers surveyed by II are leaning toward bearish opinions to their subscribers. Of course this is a contrary indicator meaning that the tide is so negative that everyone is on the same side of the market. True, but as the experienced market watchers already understand is that very overbought or oversold conditions can last for a very long time.

The DJI put in another new low. This market just doesn't want to rally. Period!! What's keeping it down. Oil and recession fears to a point but it's really about this on going Financial mess which was self inflicted from the top. This thing just won't go away.

So the bottom line is that these sentiment surveys have been very negative for a couple of weeks now and the market is still making new lows. No one said it was going to be easy.