With new death crosses seemingly occurring every day, one indicator the bulls are hoping plays out is sentiment. The Investors Intelligence report this week shows we have reached the lowest bullish reading since Oct 2008.

As we know sentiment is a contrarian indicator and extreme readings have been good at identifying areas where the likelihood of a market reversal is high. Looking at bullish sentiment is only half the story though. To get the most accurate gauge on sentiment need to look at bearish sentiment too. As you would expect only when both are at extremes does a reversal become a high probability.

Unfortunately for bulls, as you can see in the chart, bearish sentiment is currently just sitting in neutral and no where close to an extreme.  Until investors become a lot more bearish, it appears sentiment will not be much of a tailwind to higher prices.