Last week on the backs of negative price action, bullish sentiment fell sharply to the fourth lowest reading this year. According to the weekly survey from AAII, there has been quite the turn around this week as bullish sentiment jumped from just under 28% all the way up to 37.9%. This is actually just above the average of the year and an impressive improvement in a short span of time. If the rally from the last two days of October continues throughout the week, we should expect to see bullish sentiment increase once again next week.
Conversely, the bearish camp shrunk this week to 34.5%. While this is lower than last week, it is still at fairly elevated levels compared to most of the year and is about in line with readings from early October.
Neutral sentiment fell to its lowest since February 1st of this year. Investors seem to be increasingly taking sides with most leaving the bearish camp for the bulls.