Investor Sentiment Takes a Surprising Turn

By on November 8, 2009

Trader’s Narrative blog analyzes investor sentiment each week and has noticed an unusual amount of bearishness in the latest report from the American Association of Individual Investors (AAII). There are only 22% of investors reported as bullish and 56% as bears. The last time the spread was this large was in February 2009 when the market was much lower. A longer term chart is available below (click on for larger image).

SMA Comment: On a contrarian note, such a plunge in bullishness could mean this market mini-correction is almost over and we’ll see new highs before the end of the year.



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