One of the secondary indicators I keep an eye on is the AAII Investor Sentiment Survey. This indicator has been around for a number of years and tends to have some edges at extremes.
The latest readings from them, published as of January 4th, show some of the highest levels of bullishness (and lowest levels of bearishness) in quite some time. Historically these extremes have acted as a contrary indicator over the following 2-6 weeks and it’s worth noting where these levels are now.
You can find this information on their website found here http://www.aaii.com/snetimentsurvey
Also here’s the take from Zero Hedge (a perma-bear site so take that into account when reading any of their articles).
The above is from the Daily Battle Plan with Larry Connors. To learn more about Larry Connors and the Daily Battle Plan, click here.