This week’s sentiment survey from the American Association of Individual Investors (AAII) showed that bullish sentiment increased from 24.32% up to 30.45%. So even as volatility increased, bullish sentiment saw its largest weekly increase since late June. At current levels, however, bullish sentiment has now been below its bull market average of 38.1% for 20 straight weeks, which is the longest streak of below average readings in the current bull market. On top of that, bullish sentiment has also been below 40% for 24 straight weeks. The last time that happened was all the way back in 1994.
Bearish sentiment, meanwhile, remains elevated. In this week’s survey, bearish sentiment also increased up to 36.15% from last week’s level of 31.66%. While bearish sentiment remains below its recent high of 40.7% two weeks ago, the trend has clearly been higher since the start of 2015.