Equities may have surged in the wake of Wednesday’s FOMC rate hike, but individual investors certainly don’t seem too excited. In this week’s sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment fell from an already low level of 28.5% down to 23.9%. That is the lowest level of bullish sentiment since late July and the tenth lowest weekly reading of the bull market!
Based on this week’s reading of bearish sentiment, not only did all the bulls who left the bullish camp turn bearish but so did a lot of previously neutral investors. As shown in the chart, bearish sentiment spiked by nearly ten percentage points to 39.4% from 29.9%. The last time bearish sentiment was this high was at the October lows.