This week's bullish sentiment reading reported by the American Association of Individual Investors declined 11.97 percentage points to 43.09% versus last week's bullish reading of 55.06%. The changes in this indicator from week to week are volatile and investors should evaluate a multi-period average for a better gauge of the sentiment's direction. With this said the 8-period moving average of the bullish sentiment reading declined slightly this week to 43.8%. As a point of reference, the average of the 8-period moving average of the bullish sentiment reading is 39% with a standard deviation of plus or minus 8%. This measure is a contrarian one and is most predictive at its extremes.
From The Blog of HORAN Capital Advisors