Thursday, May 26, 2016

Bullish Investor Sentiment Lower Than Level Reached In 2009

The American Association of Individual Investors reported another decline in bullish sentiment this morning. Bullish sentiment was reported at 17.8% and comes in below the level reached at the depths of the financial crisis in 2009. The lowest reading in 2009 was 18.9% and occurred in early March of that year. A number of market technical indicators have turned positive as we noted in a few posts over the past several days. Now with bullish sentiment coming in at an extremely low level, it is not a surprise the market has bounced higher over the course of the past week. Investors are reminded this is a contrarian indicator and is most predictive at its extremes.

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