Even though the DJIA just saw its longest streak of daily gains in three decades and US equities had their best day of the year on Wednesday, individual investors still want little to do with the stock market. According to AAII, bullish sentiment for the latest week declined from 38.46% down to 37.91%. This is the seventh straight week that bullish sentiment was below 40%, and a record 113 weeks that bulls have failed to take a majority.
While bullish sentiment declined, bearish sentiment rose up to 35.62%, which is just two percentage points lower than bullish sentiment. Also, as shown in the chart below, bearish sentiment has been steadily trending higher after hitting a seven-month low in late November.