When it comes to individual investor sentiment, three weeks ago, we noted that many investors had suddenly become indecisive as both bullish and bearish sentiment declined while neutral sentiment surged. This week, we saw a bit of a reversal in that trend as a number of investors hopped off the fence and moved into the bullish camp. According to this week’s survey results from AAII, bullish sentiment increased from 29.1% up to 36.4%. That’s a healthy uptick in sentiment but is still below long-term averages.
Negative sentiment barely budged this week as the percentage of individual investors in the bearish camp fell from 32.1% down to 31.0%.
Last week, nearly 40% of individual investors were neutral. This week, that reading dropped to less than a third.