Individual investors continue to express a lack of bullishness on stocks. According to the recent release of AAII's Sentiment Survey, bullish investor sentiment fell to 20.31%. This is the lowest level since reaching near the same level in May 2016, at a time the S&P 500 Index was trading at 2,064. Since that time the S&P 500 Index is up nearly 900 points.
In addition to the one percentage point decline in bullish sentiment, the neutral sentiment fell approximately 3.5 percentage points. The end result saw bearish sentiment rise 4.5 percentage points resulting in a widening of the bull/bear spread to -23.7%.
Historically, market tops occur when investors are overly exuberant. If individual investor sentiment is any gauge, they are far from exuberant at this point in time.
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