A technical analyst might consider the following a bearish signal.
A) The percentage of speculators in stock index futures exceeds 70%.
B) The percentage of speculators in stock index futures exceeds 30%.
C) The percentage of speculators in stock index futures falls to 30%.
D) The percentage of speculators in stock index futures remains flat.
E) None of the above.

Question

Quizplus · Accepted Answer

A technical analyst might consider a high percentage of speculators in stock index futures (over 70%) to be a bearish signal because it indicates that many investors are expecting the market to continue to rise, which can lead to a potential market bubble that may eventually burst. This could result in a sharp decline in stock prices.

A Technical Analyst Might Consider the Following a Bearish Signal