Was That The Bottom?

The S&P 500 and the Nasdaq might have bottomed on Thursday, but we doubt it for reasons we get into below.

Both indexes rallied nicely on Friday and today. That action jibes with the extremely bearish sentiment readings of the bull/bear ratios compiled by Investors Intelligence and AAII. Last week, the former was down to 0.80, the lowest since the 2022 bear market, and the latter was down to 0.32, well below its average over time of 1.43 (chart). Both these ratios tend to be contrary indicators.