Contrary-Opinion Technicians: Interpreting Stock Index Futures Speculator Sentiment

Contrary-Opinion Techniques: Analyzing Stock Index Futures Speculator Sentiment

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Question

Contrary-opinion technicians would view the fact that 85% of stock index futures speculators are bullish as

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A. B. C. D. E.

D

The percentage of stock index futures speculators who are bullish is a measure used by contrary-opinion technical analysts. If a majority over some decision rule

(70%, for example) were bullish, this would be interpreted as a bearish sign.