The American Association of Individual Investors reports bullish sentiment rose this week to 46.94% from 40.85%. Bearishness declined to 29.59% from 38.03%. As noted in the graph below, the current bullishness is far below the high of 75% that was recorded in 2000.
In March, AAII's asset allocation survey showed investors had reduced their allocation to stocks at a time when the market had corrected. The asset allocation survey reported a nearly 7% reduction in equity exposure with 5% going to cash and 2% going to bond mutual funds. Since that time the S&P 500 Index is up about 50 points or 3.5%.
(click on table/graph for larger image)