Given the swoon in tech stocks last Friday afternoon and the subsequent volatility in the sector since then, we were expecting the normally timid investors that make up the AAII weekly sentiment survey to turn decidedly more bearish this week.  Therefore, we have to say we were somewhat impressed that sentiment held up as much as it did.  In this week’s survey, bullish sentiment declined by three percentage points, falling to 32.27% from 35.43%.  This is still an extremely depressed level, but we were surprised not to see a level in the 20% range.  Regardless of how much bullish sentiment declined, this week’s print represents the 128th straight week where bulls have failed to take a majority in the AAII poll.

Even more impressive was the fact that bearish sentiment didn’t jump.  As shown in the chart below, bearish sentiment currently stands at 29.48%, which is essentially unchanged from last week’s reading of 29.53%.

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