For the last 11 days (as of yesterday), MBH Commodity Advisors’ Daily Sentiment Indicator (DSI) has recorded a 90% or higher bullish reading for the S&P500 futures. This is the highest 10 day average ever recorded in the 19 year history of this indicator. Traders are now more bullish on the market than they were at tops in late 1987 or early 2000, which led to declines of 35% and 50%, respectively. The NASDAQ’s sentiment is similarly extreme. For the last 10 days, an average of 92% of traders surveyed believe the NASDAQ will go higher.

The ECRI index of leading indicators was slightly higher this morning, but remains in a downtrend.