After a momentous increase last week that took bullish sentiment back above 40% for the first time since February, bullish sentiment declined slightly this month. According to the American Association of Individual Investor (AAII), bullish sentiment dropped from 40.39% last week down to 39.0% this week. So while it was a decline in bullish sentiment, the magnitude of the decline was modest at best.
Even as bullish sentiment declined, bearish sentiment saw a larger decline falling by two percentage points from 20.59% down to 18.60%. For bearish sentiment, this is the lowest reading we have seen in this measure since February 19th. As shown in the chart below, the uptrend in bearish sentiment that had been in place for most of this year has now been fully broken.