With everything seemingly okay in the equity world again after the major averages all hit new highs to close out last week, individual investors turned more bullish in the latest week. According to the monthly survey from AAII, bullish sentiment increased from a very depressed level of 26.92% up to a five week high of 35.43%. While it’s a far ways from a majority (a level we haven’t seen now in a record 127 straight weeks), this is the first time bulls have been in the plurality in five weeks.
Although bullish sentiment increased, bearish sentiment only saw a modest decline. As shown in the chart below, negative sentiment declined by just two percentage points but did manage to fall back below 30%. Also, that uptrend that had been in place since the lows in late 2015 appears to have been broken.
With bullish sentiment on the rise and bearish sentiment barely budging, the neutral camp really shrunk this week falling from above 40% down to 35%.