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Individual investors hopped off the Trump rally train a little bit this week, as the AAII bullish reading dropped 6.1 percentage points from 49.89% down to 43.78%.  So after nearly eclipsing 50% for the first time since January 2015, it looks like we are going to have to wait at least another week before half of individual investors are on the bullish bandwagon.  It’s really pretty remarkable when you think about it, that despite all the big gains we have seen in stocks, that bullish sentiment has yet to eclipse 50%.

aaii-bullish-sentiment-120116

As one might expect, with the drop in bullish sentiment, bearish sentiment ticked higher this week, but by only half of the magnitude of the increase in bullish sentiment.  As shown in the chart below, bearish sentiment increased from 28.03% up to 31.12%, but still remains below the uptrend that it broke below last week.

aaii-bearish-sentiment-120116

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