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The streak goes on.  Despite new all-time highs in the major equity benchmarks and the DJIA getting within half a point of 20,000, individual investors still can’t get to a majority in the bullish camp.  According to this week’s survey from AAII, bullish sentiment dropped by about two and a half points in the latest week, falling from 46.20% down to 43.64%.  That’s actually the lowest level since early December and shows that just like the overall consolidation we have seen in the market in the last several weeks, sentiment has also taken a breather.  For the sake of reference, if bullish sentiment goes another five weeks without reaching 50%, it will be the longest streak of sub-50% readings in the history of the survey.

AAII Bullish 011217

Although bulls aren’t in the majority, they do have a clear plurality.  As shown in the charts below, bearish sentiment remains relatively low at 26.97%, while neutral sentiment is still under 30%.  We would also note that this is a big change from the first half of 2016, when neutral sentiment was the leader with weekly readings routinely above 40%.

AAII Bearish 011217

AAII Neutral 011217

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