Interestingly, the individual investor sentiment as reported by the American Association of Individual Investors remains at levels that would suggest the market could correct further. This is only a technical indicator; however, the current bullishness reading of 38.33% remains above levels seen in other bear market bottoms--24.5% in 2002 and 16.5% in 2005. The current reading is down from last week's level of 44.83%. The bull/bear spread deteriorated to -4% versus last week's reading of 12%.
(click graph for larger image)