As the S&P 500 has been making all-time highs in the past week, bullish sentiment as reported by the AAII Investor Sentiment Survey has risen back up to its highest levels since the start of April.  The percentage of investors reporting an optimistic outlook rose to 39.02% from 33.52% last week. This is still only slightly above the historical average; so it is not at an alarming level.  Alongside the solid increase in AAII’s reading, Investors Intelligence sentiment readings are echoing the optimistic shift as the percentage reporting as bulls rose to its highest level since early October of last year.

Bearish sentiment also rose 1.2% to 21.3% this week.  In the grand scheme of things, though, even with this increase bearish sentiment still remains at very low levels.  As with bullish sentiment, the Investors Intelligence survey results are similar to the AAII survey as bearish sentiment also fell to multi-month lows.

Neutral sentiment, on the other hand, saw a sharp decline this week falling to 39.63% from 46.31% last week.  That is the largest decline since the final week of 2018 when the market bottomed and a very large portion of investors reported outright bearish sentiment.  This time around, the decline in neutral sentiment predominantly went towards the bulls.  Start a two-week free trial to Bespoke Premium to access our interactive economic indicators monitor and much more.

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