The S&P 500 has seen a modest decline over the last week, but it was enough to send a large number of bullish individual investors scurrying for the exits. According to the weekly sentiment poll from the American Association of Individual Investors, bullish sentiment saw the largest weekly decline since March this week, falling from 35.56% down to 29.42%. That’s the lowest weekly reading since the week after the Brexit vote and now makes it 43 straight weeks where bullish sentiment has been below 40% and the 77th week in the last 78. Will bulls ever be a majority again? If they haven’t been able to get to majority status during this Summer’s rally, it’s hard to imagine what kind of rally it would take.
While bullish sentiment declined, bearish sentiment ticked up to just under 30% and its highest level since just after the Brexit vote. At 29.64%, bears now outnumber bulls despite the fact that the S&P 500 is just below all-time highs.