It’s been a pretty uneventful week in the markets, so not surprisingly, bullish sentiment was little changed as well. According to the weekly survey from AAII, bullish sentiment increased from 32.27% up to 32.65%, extending the current record streak of weeks below 50% to 129. More recently, over the last sixteen weeks, there have been only four weeks where more than a third of investors were bullish.
While bulls have been scarce, bears haven’t been running rampant. In this week’s survey, bearish sentiment was pretty much unchanged at 28.91%. Believe it or not, this is the third week where bearish sentiment was below 30%, which is the longest streak of the year. As shown in the chart below, the trend of higher bearish sentiment that began in late 2016 has definitively been broken.