Bullish sentiment on the part of individual investors retreated this week after nearly getting back to average levels last week. According to the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment dropped from 37.5% last week to 34.1%. While the magnitude of the decline is small, it is noteworthy due to the fact that last week’s level of bullish sentiment was within one percentage point of the bull market average, so any increase this week would have likely ended the current streak of below average readings in bullish sentiment which now stands at 29. This week also marks the 33rd straight week that bullish sentiment has been below 40%, which is also the longest streak on record. Oh well, maybe next week.
Even as bulls retreated this week, so too did the bears. As shown in the chart below, bearish sentiment declined from 28.2% down to 27.1%. This is actually the lowest level of bearish sentiment since late July. In spite of the decline, though, the uptrend in bearish sentiment remains intact.