Thursday, January 04, 2007

Bullish Sentiment Continues to Rise

In the American Association of Individual Investors sentiment survey this week, AAII reported another increase in bullish sentiment.
  • Bullish sentiment climbed as high as 75% on 1.6.2000
  • Bullish sentiment equaled 66.7% on 7.20.2000
As evident from above, bullish sentiment can persist at higher levels for weeks at a time. As noted in past posts, this is a contrarian indicator--meaning high bullishness can be a signal of a market setting itself up for a downward correction.

(click on charts for larger image)

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