A Decline In Bullish Investor Sentiment After Last Week's Equity Pullback

 |  Includes: DIA, QQQ, SPY
by: David I. Templeton, CFA
The American Association of Individual Investors reported bullish investor sentiment fell 4.56 percentage points to 36.78% versus the prior week's bullishness reading of 41.34%. The AAII Sentiment Survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months. The percentage decline in bullishness was reflected in an increase in a neutral tone by investors as neutral sentiment increased over five percentage points.
From The Blog of HORAN Capital Advisors
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Investors are certainly uncertain about the future direction of the market and have been quick to change their sentiment bias upon short-term declines in the market. The decline in bullish sentiment this week follows last week's market decline of 1.9% as noted in the below "weekly" chart of the S&P 500 Index.
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