After one week where bullish sentiment briefly poked its head above 40%, we have now seen three straight weeks of declines in positive sentiment. According to this week’s survey of investor sentiment from the American Association of Individual Investors (AAII), bullish sentiment dropped from 34.27% down to 30.77%. Even after this week’s bounce, it appears as though investors are still on edge following last week’s pullback.
As bullish sentiment has dropped for the last three weeks, bearish sentiment has increased in each of the last two weeks and is now above 30% for the first time since 10/1. At 30.55%, bearish sentiment is now within 0.22 percentage points of bullish sentiment. That’s the closest the two measures of sentiment have been to each other in over six months.