Use the following information for the next two questions: Technical analysis is a contr...

Use the following information for the next two questions:

Technical analysis is a controversial investment practice. Technical analysis covers a wide array of techniques, which are all used in an attempt to predict the direction of a particular stock or the market. Technical analysts look at two major types of information: Historical stock prices and investor sentiment. A technical analyst would argue these two information sets provide information about the future direction of a particular stock or the market as a whole.

Investor Sentiment A technical analysis tool that is sometimes used to predict market movements is an investor sentiment index. AAII, the American Association of Individual Investors, publishes an investor sentiment index based on a survey of its members. In the following table you will find the percentage of investors who were bullish, bearish, or neutral during a four-week period:

What is the investor sentiment index intended to capture? How might it be useful in technical analysis?