Bearish

A bearish outlook reflects the expectation that an asset's price will decline, driven by deteriorating fundamentals, technical weakness, negative news flow, or unfavorable macro conditions. Bearish technical signals include price below declining moving averages, RSI failing to reach prior highs and rolling over, and MACD crossing below its signal line. Being bearish on a position can mean reducing exposure, holding cash, using options to hedge, or actively shorting the asset. Importantly, bearish sentiment at extremes is often contrarian, when nearly all participants are bearish and sentiment surveys show record pessimism, the marginal seller may be exhausted and a recovery becomes more likely. News-driven bearish sentiment often creates the most short-lived price reactions because the information is quickly discounted, while sentiment that shifts gradually reflects structural change that tends to persist longer.