Does sentiment suggest a market top?

Interesting article from The Texas Hedge Report about current market sentiment (with full permission):


Backstreet's Back - Time to Sell

Elliot Wave’s Bob Prechter, one of the most well known deflationists, once produced a chart comparing the financial markets to the trends within popular culture.  At the top of a bull market, a sense of optimism & giddiness prevails with popular culture spitting out bubblegum music, short dresses and boybands.  At market bottoms, the chart-topping music turns depressing, dresses are longer and cultural optimism cannot be found.

Just take a look at the late 1990s for example.  Female hairstyles and dresses kept getting shorter.  After several years of depressing or “grunge