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  |  April 5, 2002
Using the Bearish Sentiment Index
Have we evaded another wave of extreme pessimism? Traders and investers like to monitor sentiment indicators. One of the longer standing ones is the Bearish Sentiment Index that measures the sentiment of investment newsletters. Started in the sixties, it's best used as a contrarian indicator. When too many people think the market will go up, it goes down, and when too many people think it will go down, it goes up.

by Gary Grosschadl

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