US Stock Market Sentiment Reaches Extreme Caution Zone: Retail Investors Go Long, Institutions Reduce Tech Stock Holdings

BlockBeats News, July 1st, the current US stock market sentiment index has risen to 2.0, the second highest level since 2021, entering an extremely optimistic range in history. The index has been maintained above 1.0 for several weeks, indicating that the market is at a significantly overbought state. Currently, retail investors' sentiment continues to shift towards optimism, while institutional investors are quietly reducing their risk exposure, especially focusing on the US tech sector.

Historical experience indicates that such extreme sentiment levels often precede a short-term market pullback and increased risk. If negative catalysts emerge subsequently, the market may face downward pressure.