After collapsing below 25% at the start of June, bullish sentiment had rebounded for six consecutive weeks, but this week's release of the AAII survey snapped that streak. The percentage of bullish investors dropped to 31.74% from 35.93% last week. This comes despite the major indices once again reaching all-time highs yesterday (which admittedly would have little effect on the survey due to timing) and earnings season kicking off to a solid start with rising beat rates and guidance spreads. While this was the biggest drop in bullish sentiment since May, it has not brought the indicator to any sort of extreme low, but it has now been below its historical average for 11 consecutive weeks. While that may sound like a long streak, in the history of the survey—going back to 1987—there have been 19 other such streaks; six of which continued on for twice as long.
Regards,
Ted
https://www.bespokepremium.com/interactive/posts/think-big-blog/sentiment-steps-back
