Investors Intelligence Correction Forecasts

In this week's update of the Investors Intelligence sentiment data, the number of newsletter writers forecasting a correction of 10% rose to 29.9%.  This is the highest reading since January when it reached as high as 31.5%.  While Investors Intelligence data is often considered contrarian, recent high readings of advisors looking for a correction have been pretty good calls.  In the S&P 500 chart below, the red dots represent periods when the percentage of respondents looking for a correction was 29% or more.  While the ensuing declines were not always 10%, each occurrence has been followed by at least a minor decline.

Subscribe to Bespoke Premium to receive more in-depth research from Bespoke.