Subject: Re: CNN Index at 77 = "Extreme Greed"
First impression from a VERY first glance comparing the CNN and the S&P indexes for the last 10 years it seems to me that an extremely high CNN index does not strongly correlate with the market going down from there on, that it can but not necessarily must be followed by a bear (contrary to my impression from following the CNN index for the last 1-2 years where that connection was very clearly visible). Maybe "Greed" is just too "natural" as the market going up longterm is the norm.

On the other hand extremely low index values seem to be a better predictor --- of a from then on rising (or continuing to rise) market. Will require more detailed analysis but definitely interesting.