While the overall market continues to charge higher, it may not be the bears who will be frustrated. As we have noted numerous times in the last couple of weeks, bullish sentiment continues to decline even though the market keeps going higher.
This week was no exception, as bullish sentiment on the part of individual investors dropped for the third straight week. According to the American Association of Individual Investors (AAII), bullish sentiment declined from 42.77% down to 42.25%. Since Jan. 24, bullish sentiment has now declined 19.3%. Eventually a pullback is going to come. Until it does, though, for those on the sidelines, the recent action in the market has to be frustrating, while those who are still bullish are increasingly nervous.