With equities starting off the week on a down note, investor sentiment headed south again this week.  According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment declined from 29.75% down to 27.55%.  That makes 48 weeks out of 48 where bullish sentiment has been below 40%.  Even as bullish sentiment declined, bearish sentiment also declined falling from 39.96% down to 34.72%.

AAII Bullish 020416

Given the back and forth action in the market over the last couple of weeks where the S&P 500 can move up or down 1% after a butterfly flaps its wings, investors are once again choosing to step to the side.  As a result, neutral sentiment jumped up to a five-week high of 37.74%.

AAII Neutral 020416

 

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