The First Coverage Market Sentiment Index tumbled last week, its fourth-straight week of decline and another clear sign of a downward trend, according to the organization.
After teetering at 60.0 in mid-May, the highest level since the index began, Street sentiment fell to 57.1 last week. The drop in sentiment was 2.1%, worse than the 1.5% drop of the prior week.
Plus, the index flashed bearish, after showing bullish signs the prior seven weeks.
Sentiment fell in seven of the 10 industries, not quite as bad as nine the week before. Four of the seven decliners this week fell by 5% or more, with health care leading the way down with a 9% drop. Basic materials and telecommunications, though, managed sturdy gains of 6% and 5%, respectively.
After steadily climbing in industry rankings for sell-side sentiment the last two months, the financial sector may be running out of gas, according to First Coverage. It fell 3% last week.
Derived each week from an aggregated analysis of thousands of trade ideas and data sent in real-time (on the First Coverage platform) from more than 300 sell-side firms to portfolio and asset managers on the buy-side, the First Coverage Weekly Street Sentiment aims to provide market-watchers with a snapshot of trading trends and the Street's perspective of the days ahead.
The DJIA declined 2.9%, while the S&P 500 and Nasdaq both fell 3.7% during the week ended June 25.
The Fed is very worried about the economy and should keep interest rates low for a long time, the group concludes.
