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FINANCE
Stock Market
Market Sentiment
Market sentiment acts as a contrarian signal often predicting market reversals
4 Feb 2026
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Why is market sentiment often considered a contrarian indicator in financial markets?
Because market sentiment always predicts the exact direction of future price movements.
Because extreme bullish or bearish sentiment often signals a potential reversal in market trends.
Because market sentiment is based solely on economic reports without considering investor psychology.
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