The weekly sentiment survey results from AAII were just released, and while bullish sentiment is still nowhere near 50% and well below historical averages, there were some notable moves nonetheless. In terms of bullish sentiment, optimism declined this week falling from 32.65% down to 29.71% (what else is new). That now makes it a record 130 straight weeks where half of the investors surveyed were not bullish.
Even as bullish sentiment declined, bearish sentiment also shrank, falling from 28.91% down to 26.86%. That represents the lowest reading in bearish sentiment since the first week of the year. Looking at the chart, negative sentiment has really started to decline ever since that mini-uptrend was broken several weeks back.
With both the numbers of bulls and bears continuing to thin, there has been a bull market in neutral sentiment. In this week’s survey, the percentage of investors who couldn’t make up their minds ballooned to 43.43% or the highest reading since last August. Let’s just call them cautiously optimistic, or better yet, optimistically cautious.