It looks as though some of the big disappointing earnings reports are starting to weigh on investor sentiment. According to the latest weekly sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment dropped down to 27.37% this week from last week’s reading of 33.41%. This now makes it 26 straight weeks where bullish sentiment has been below 40%, and 60 out of the last 61 weeks. Investors still want nothing to do with the most recent equity market rally.
With this week’s decline in bullish sentiment, more investors are now bearish than bullish. In this week’s survey, bearish sentiment rose to 28.66% from 23.92% last week. Bearish sentiment is still nowhere near levels it was earlier this year, but this is the first time since late February where bears have managed to outnumber the bulls.