With nine straight record closes for the DJIA, it should come as a surprise to no one that bullish sentiment increased in the latest week. What continues to amaze us, however, is the level of sentiment. According to the latest sentiment survey from AAII, bullish sentiment rose by 5.4 percentage points to 38.46%. This marks the sixth straight week where bullish sentiment has come in below 40%, but more importantly, it’s a record 112th straight week where bullish sentiment has come in below 50%.
While bullish sentiment increased, bearish sentiment was relatively unchanged at 32.31% (32.36% last week). In other words, nearly one-third of investors are flat out bearish. Also, if you look at the right-hand side of the chart (red circle), bears have been sneakily trending higher in the last several weeks.
Pretty much all of the increase in the bullish camp this week came from neutrals which fell below 30% for the first time since the Inauguration.