As the market’s rally has lost steam in the past two weeks, bulls are rushing for the exits.  After a six-point decline in bullish sentiment last week, this week’s sentiment survey from AAII showed another five point decline, falling from 27.37% down to 22.33%.  Believe it or not, this week’s bullish reading is the lowest since 2/11 – the day of the low for the year when the S&P 500 was 11% lower than it is now!  This is now the 27th straight week that bullish sentiment has been below 40% and the 61st week in the last 62.

While bullish sentiment has been on the decline, bearish sentiment is back up above 30% to its highest level since February.  The S&P 500’s failure to take out its recent highs sure isn’t sitting well in the minds of investors.