Bearish Sentiment Spikes

Includes: DIA, QQQ, SPY
by: Bespoke Investment Group

With the market showing some signs of increased volatility this week, investor sentiment took a turn for the worse. In the latest sentiment survey from the American Association of Individual Investors (AAII) bullish sentiment declined slightly from 38.5% last week to 37.6% this week. While the decline was small, bullish sentiment is now back down below its bull market average of 38.4%.

While bullish sentiment only saw a small decline, bearish sentiment spiked to 28.65% from 22.39%. This was the largest one-week increase since April 10th. This week's trend in bullish and bearish sentiment readings is a continuation of the trend that has been in place for much of this bull market. Individual investors are slow to embrace the bull, but at the first signs of trouble are quick to exit.