Are Undecided Investors More Bullish?

Includes: DIA, QQQ, SPY
by: David I. Templeton, CFA

This week's release of the American Association of Individual Investors Sentiment Survey saw an increase in individual investor bullish sentiment. The bullishness level increased to 37.04% versus last week's ready of 30.68%. Most of the increase came at the expense of a decline in the neutral investors. The neutral reading fell over four percentage points. The eight-period moving average of the bullishness level increased to 35.6% from 33.8%. Additionally, the bull//bear spread improved to minus 6% from minus 15%. In true fashion, as investor bullishness improved, the S&P 500 index fell from 1,281 to 1,275 at the time of the survey.

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