Although equities are back to their losing ways again this week, individual investors seem to be getting a little more bullish.  According to this week’s sentiment survey from AAII, bullish sentiment increased from 21.52% up to 29.75%.  Believe it or not, that’s the highest weekly reading since late November and the largest weekly increase in sentiment since early October.  Make no mistake, though, sentiment is still weak.  It has now been 13 weeks since bullish sentiment last moved above 40%, and before that one week of 40% bullish sentiment, we saw 34 straight weeks of sub 40% bullish sentiment.

AAII Bullish Sentiment 012816

The increase in bullish sentiment this week came entirely from the bearish camp, as bearish sentiment declined from its highest weekly reading in nearly three years down to 39.96%.  That was also the largest weekly decline in bearish sentiment since early October.  Even after this week’s moves in sentiment, though, the spread between bulls and bears is still skewed majorly to the negative side with bears outnumbering bulls by more than 10 percentage points.

AAII Bearish Sentiment 012816

 

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