It’s lonely being a bull these days. According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment fell from 27.34% down to 20.04%. This is the lowest weekly reading for bullish sentiment in more than two years (April 2013). At its current level, bullish sentiment is now just slightly more than a point above its lowest levels since the start of 2009 (18.92%).
Where did all the bulls go? Straight to the bearish camp. In this week’s survey, bearish sentiment surged from 24.63% up to 32.58%, which is the highest weekly reading since last October during the height of the Ebola scare. With bearish sentiment where it is now, the spread between bulls and bears is now at its most negative level since August 2013. Wouldn’t you know it, that just when most investors couldn’t find anything to like about the market, stocks surged. No one ever said it was easy.