Big Drop In Investor Sentiment

Just a quick note regarding the American Association of Individual Investors' sentiment report released this morning. Individual investor bullish sentiment feel to 24.37% versus last week's reading of 38.33%. The bull/bear spread came in at -32.77% compared to last week's level of -4.17%. Along with my post on the investor sentiment cycle yesterday and this data point, maybe this serves as some confirmation that we are in the discouragement phase of the sentiment cycle.