Bullish Investor Sentiment Is Below Long Term Average

The American Association of Individual Investors reported this week that investor bullish sentiment of 33.72% was below the long term average bullish sentiment level of 39%. This technical indicator is a contrarian one and would point to potentially higher stock gains if looked at on a standalone basis. This week's reading saw a nearly 10 percentage point drop in bullishness from the prior week's level of 43.81%. The bull/bear spread widened to -12% versus last week's +9% spread.

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Source: American Association of Individual Investors

Comments

[AndrewBaker:]

Well, could it be more and more people are realising we're in a false market and that a correction is coming?

May 22 09:39 AM

[thiazole:]

Man, you need to do a moving average of that indicator to smooth it out or something. It looks like a Reichter scale to me - or maybe it is just that we are trying to focus "this week's" data on a chart with nearly 10 years of data in it.

May 22 10:24 AM