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The current sentiment debate

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DAVIS265 gave a severe oversold reading on January 24, 2022. The historical record of this indicator suggests it is often followed by rallies lasting months. That DAVIS265 pessimism was even before the crisis event of the Russian invasion. Crisis events generally see a short-term selling panic and then a good rally. However, cyclical valuation and sentiment indicators still warn of longer-term risks.

Ned Davis Research | NDR Hotline | Insights | 3X Weekly

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