After one of the most chaotic periods in the financial markets in years last week, investor sentiment has stabilized a bit this week. According to the weekly survey of investor sentiment from the American Association of Individual Investors, bullish sentiment was pretty much unchanged this week falling from 32.5% down to 32.38%. At this level, bullish sentiment has now been below its bull market average for 23 straight weeks and below 40% for 27 weeks. Going back to 1987, there have only been two other periods where bullish sentiment was below 40% for 27 or more weeks.
While bullish sentiment was pretty much unchanged, bearish sentiment declined from 38.27% down to 31.67%, With this decline, bearish sentiment dropped below bullish sentiment for the first time in six weeks.