Sentiment vs. support
- BKNG negative sentiment elevated
- Shares down 27% over the past month
- Stock testing February-May lows
Sentiment is one of the trickier market concepts to apply in practice, not just because quantifying human emotion is difficult, but because it can, depending on circumstances, function either as a trend-confirming or contrarian signal.
For example, on Wednesday, travel stock Booking Holdings (BKNG) appeared on the LiveAction scan for stocks with the highest negative social media sentiment:
Source: Power E*TRADE. (For illustrative purposes. Not a recommendation.)
A quick review of BKNG’s recent price action makes it easy to understand why traders and investors (especially the latter) were down on the stock. Shares rallied 39% off their May low to hit a roughly seven-month high in early August, but have fallen more than 26% since August 25, enjoying only six up days in the past 20—only two of which were larger than 0.5%. The stock is also more than a year removed from its last record high, in July 2025:
Source: Power E*TRADE Pro. (For illustrative purposes. Not a recommendation.)
While the combination of a falling stock and elevated bearish sentiment makes perfect sense, experienced traders also know that emotional extremes—negative or positive—sometimes correspond with price turning points, especially when those extremes accompany high-momentum price moves.
The challenge, of course, is determining when sentiment is “extreme.” Price activity, though, can provide additional context. In this case, for example, Wednesday’s 5% decline dropped BKNG to a potential support zone—that is, the general vicinity of the February and May lows, both of which served as staging grounds for intermediate-term bounces.
BKNG’s behavior over the next several days may provide useful insights, illustrating whether sentiment was functioning as a contrarian indicator, or accurately signaling additional downside.
Note: Morgan Stanley & Co. analysts currently maintain an Overweight rating on BKNG.1
Market Mover Update: US stocks pulled back on Wednesday as crude oil prices turned higher (after five-straight down days) and US Treasury yields hit fresh multi-decade highs. The benchmark 10-year T-note yield closed at 5.11%.
Today’s earnings include: Costco (COST), Darden Restaurants (DRI), Scholastic (SCHL), TD Synnex (SNX).
Today’s numbers include (all times ET): weekly jobless claims (8:30 a.m.), current account (8:30 a.m.), New Home Sales (10 a.m.), EIA Natural Gas Report (10:30 a.m.).
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1 MorganStanley.com. Booking Holdings. 9/23/26.