Bulls are not only running on the streets of Pamplona this week, but they’re on Wall St. as well. Even with yesterday’s trade-induced decline, individual investors seized on the S&P 500’s four-day win streak and turned considerably more optimistic on equities. According to the weekly sentiment survey from AAII, bullish sentiment surged from 27.9% up to 43.1%. That 15.2 percentage point increase represents the largest one week increase in optimism since the week after the November 2016 election of President Trump.
Not surprisingly, most of the increase in bullish sentiment came from the bearish camp, where the percentage dropped from 39.3% down to 29.2%.
Neutral sentiment also saw a sizable decline this week as investors became a little bit more decisive in their views. This week’s reading of 27.8% is the lowest level of neutral sentiment since the start of February.