In the American Association of Individual Investors sentiment survey this week, AAII reported another increase in bullish sentiment.
- Bullish sentiment climbed as high as 75% on 1.6.2000
- Bullish sentiment equaled 66.7% on 7.20.2000
As evident from above, bullish sentiment can persist at higher levels for weeks at a time. As noted in past posts, this is a contrarian indicator--meaning high bullishness can be a signal of a market setting itself up for a downward correction.
(click on charts for larger image)