1. What would a technical analyst say about market efficiency?

2. 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 table below 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?

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WEEK BULLISH BEARISH NEUTRAL 37% 52 25% 14 35 38%