Bullish Sentiment Approaching 2016 Lows

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Includes: BXUB, BXUC, EPS, IVV, LLSP, RSP, RWL, RYARX, SDS, SFLA, SH, SPLX, SPUU, SPXL, SPXS, SPXU, SPY, SSO, UPRO, VFINX, VOO
by: Bespoke Investment Group

Being bullish these days is about as popular as shopping at a department store. In the latest sentiment survey from the American Association of Individual Investors (AAII), bullish sentiment dropped from 20.41% down to 19.34%, representing the fourth straight weekly decline. This is the lowest weekly reading since early February and not much above the 2016 low of 17.9% in mid-January.

While bullish sentiment saw just a one percentage point decline, bearish sentiment increased by nearly three points, rising to 34.1% from 31.29%. Moving in the opposite direction as bullish sentiment, this is the fourth straight week where bearish sentiment increased. The last time it was this high was in the week of 2/18.

Levels of neutral sentiment pretty much sum up the market these days, as investors aren't bullish, but they haven't necessarily been piling on in the bearish camp either. More accurately, with neutrals up in the high-40 percentage range, individual investors are increasingly indifferent - as they have become each of the prior two times that the S&P 500 has approached 2,100.