Internal Strength Diverging After Excessive Bullish Sentiment

Swings from excessive bullish and bearish sentiment have been a good contrarian market indicator for the past 6 years. Every time the indexes of stocks above or below 200-days Average reached an extreme of 90-100 percent a correction in DOW industrial was close.

Instances where the index started falling, diverging away from the DOW index( indicating internal strength is weakening) were bearish signals, as at least a hefty correction followed.