40 Sub 40

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Includes: EPS, IVV, LLSP, RSP, RWL, RYARX, SDS, SFLA, SH, SPDN, SPLX, SPUU, SPXE, SPXL, SPXN, SPXS, SPXT, SPXU, SPXV, SPY, SSO, TALL, UPRO, VFINX, VOO
by: Bespoke Investment Group

After trading sideways for the last two weeks now, bullish sentiment dropped back down below 30%, as these days it doesn't even take a market decline to make individual investors a little more nervous. According to the weekly survey from the American Association of Individual Investors (AAII), bullish sentiment dropped from 31.25% down to 29.79%, for the third straight weekly decline and the 40th straight week where bullish sentiment has been below 40. The last time we saw bullish sentiment above 50% was during the first week of 2015!

AAII Bullish 080416

Interestingly, while bullish sentiment declined, bearish sentiment also dropped, falling from 28.4% down to 26.8%. So, rather than turning more bearish as the market consolidates, investors are taking a wait-and-see approach with neutral sentiment increasing to 43.44% from 40.34% last week.

AAII Neutral 080416