In this week's sentiment survey by the American Association of Individual Investors, it was reported that bullish sentiment fell to 26.69%. This is the lowest level for bullish investor sentiment since August of last year, which was near the low point for the market in 2010. The bull/bear spread was reported at -14.6%. It is important to note the sentiment indicator is a contrarian one and tends to be most accurate at its extremes. As the below chart outlines, the bullish indicator is entering extreme territory.
|From HORAN Capital Advisors|