After breaking its downtrend heading into last weekend, individual investor sentiment surely has improved.  In this week’s sentiment survey from AAII, bullish sentiment ticked up to 36.68% from last week’s level of 33.51%.  Beleive it or not, that’s actually back above the average of 36.62% for the current bull market.

The big move this week, however, was in bearish sentiment which declined for the second straight week, falling from 25.5% down to 20.6%.  Since its recent high in early April, bearish sentiment has now been more than cut in half.  It’s also at the lowest level since the first week of the year, when the market was in party mode.  As we all remember now, that party was broken up shortly thereafter.

Finally, neutral sentiment has also been on the rise recently and remains above 40% for the third straight week.

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