With equities back on the upswing this week, bullish sentiment also saw a rebound. According to the weekly survey from the American Association of Individual Investors (AAII), bullish sentiment rose from 27.91% last week to 30.81% this week. That is the highest reading of July, and only the second time since the end of April that bullish sentiment has been above 30%. Needless to say, investors are still far from exuberant based on this survey as bullish sentiment has been below its bull market average for 16 straight weeks (longest streak since Summer 2012).
While bullish sentiment rebounded, bearish sentiment erased nearly all of the increase from the last two weeks, falling back down to 23.24%. Even after the increase, bearish sentiment has been trending higher since its lows late last year.