In the last two weeks, the S&P 500 has rallied 1.5% and broken out above significant resistance at the 2,800 level. With that kind of move, you would expect to see an uptick in optimism from individual investors. Based on the latest AAII survey data, though, we have seen the opposite. According to this week’s report, bullish sentiment declined for the second week in a row, falling from 34.66% down to 31.52%.
As bullish sentiment declined, bearish sentiment ticked up from just under 25% to just under 27%.
The plurality of investors, however, are still on the fence. As shown in the chart below, neutral sentiment in this week’s survey increased from 40.4% up to 41.58%. That’s the highest level since mid-May. Sentiment is a major driver of stock prices and is a topic we cover regularly in reports for clients. To stay on top of the latest sentiment trends, you can start a two-week free trial to Bespoke Institutional.