Sentiment data on the part of individual investors this week showed declines both the number of investors considering themselves bullish and bearish. According to the American Association of Individual Investors (AAII), bullish sentiment saw a modest decline, falling from 33.26% down to 32.12%. This represents the 27th straight week where bullish sentiment has been below its bull market average and the 30th straight week where it was below 40%. Needless to say, investors haven’t seen a lot to get excited about for quite some time now.
While you would expect bullish sentiment to drop given the weakness we saw in equities this week, it was surprising to see bearish sentiment decline as well. This week’s reading of bearish sentiment dropped from 29.13% down to 28.69%, which is the lowest reading since July. Although bearish sentiment is at a two-month low, however, the trend in place since late last year has clearly been higher.