Even though it has been a rocky week for stocks, investor sentiment actually saw a slight rebound in the latest week. According the weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment increased from a depressed reading of 22.61% last week to 27.91% this week. Even at current levels, though, bullish sentiment remains low by historical standards. In fact, it has now been below its bull market average of 38.28% for 15 straight weeks, which is the longest streak since July 2012.
This week’s increase in bullish sentiment came at the expense of bearish sentiment, which declined from 35.09% down to 29.18%. Even after that decline, though, bullish sentiment is below bearish sentiment for the fourth week in the last five, which hasn’t happened since May 2013. With both bullish and bearish sentiment below 30%, neutral sentiment came in above 40% for the 14th straight week. Going back to 1987, that is the longest streak of 40%+ neutral sentiment on record.