The investor sentiment survey, a contrarian indicator, released today by the American Association of Individual Investors noted the bearish sentiment level increased by 5.7 percentage points to 44.55%. This level of bearishness was last seen this past summer when the S&P was trading in the low 1,300s. Bullish sentiment fell to 28.66%, also at levels seen this past summer. In spite of this level of sentiment negativity, the S&P has continued to move higher. This higher move in the market is typical of a market climbing the proverbial "wall of worry". If companies continue to disappoint on earnings though as they have tonight, the market advance could be nearing an end in the short term.
|From The Blog of HORAN Capital Advisors|