Masanari Takada, a strategist at Nomura, warned in a report this week that an "ominous pattern" is developing in market sentiment that could point to deep losses ahead. Takada cited the sharp deterioration in an internal equity sentiment index, which is calculated by the Nomura macro and quant strategy teams and is based on unspecified market data. The recent swings in sentiment look like the ones experienced by the same index at the same point in 2008. "The trend in US stock market sentiment is starting to resemble the pattern observed in the run-up to the Lehman crisis," Takada wrote in the report. US markets raced back to life in early 2019, driving a recovery in sentiment like the one that occurred in mid-2008.

Source: CNN June 06, 2019 11:15 UTC