The main reason why I'm bringing this up is because on 9/28/2011 the ISEE Index (All Securities) hit a low of 53, which wasn't even hit during the 2007-2009 recession and financial crisis. It came close on 3/10/2008 when it hit 56. The ISEE actually pierced through that level on 6/30/2011 when it hit 55. So, 53 seems like an extreme bearish read, no? It hit a high of 230 on 12/10/2010. Since that extreme bearish read, the ISEE increased to 96 on 9/29/2011 and 89 on 9/30/2011. Sometimes extreme reads are decent fades, but I'm wondering if there's a longer term sentiment read from this.
When looking at the ISEE Index (All Equities Only), the ratio hit a low of 71 on 9/28/2011, which was the lowest read since early 2008. But it didn't break below 70 and 66, which were the lows on 1/17/2008 and 3/10/2008. Somewhat interesting. Chart them out at ISE.com here.
ISEE Index - All Securities (ISE)
ISEE Index - Equities Only (ISE)