In yet another example of investors not knowing what to do in this market, the latest sentiment survey from the American Association of Individual Investors (AAII) showed that both bearish and bullish sentiment levels declined this week. It’s getting lonely in the bullish camp these days as just 21.97% of investors are positive on equities, which is down from 25.35% last week. This week’s reading now makes it 34 straight weeks that bullish sentiment has been below 40%. As mentioned, bearish sentiment also declined over the last week, but the decline was not as big (-2.27 percentage points). Furthermore, at 35.23%, more than one-third of investors are still bearish.
While bullish sentiment is stuck in the 20s and bearish sentiment in the 30s, neutral sentiment is back above 40%. As has been the case for well over a year now, when the S&P 500 nears 2,100, investors temper their enthusiasm for stocks.