The seesaw that is bullish sentiment took a downward turn in the latest week. According to the weekly survey from the American Association of Individual Investors (AAII), bullish sentiment fell from 30.45% down to 26.82%. Looking at the chart below, ever since May we have been seeing bullish sentiment track the overall market with a seesaw pattern of ups and down. Following this week’s decline, bullish sentiment has now been below its bull market average of 38.1% for 21 straight weeks, which is the longest streak of the entire bull market. Taking a longer term look, bullish sentiment has been below 40% for 25 straight weeks now. We haven’t seen that long of a streak since August of 1994!
Although bullish sentiment declined, bearish sentiment also dropped this week, falling from 36.15% down to 33.33%. With the simultaneous declines in both bullish and bearish sentiment, sentiment is pretty much right back where it was two weeks ago with a plurality of investors not being able to make up their mind in the neutral camp.