Thursday, December 17, 2009

Bullish Investor Sentiment Stuck In A Range

Today's release of the individual investor sentiment survey shows investor bullish sentiment stuck at the low 40% level over the past several weeks. For the period ending November 17, 2009, individual investor bullish sentiment was reported at 42.11%. For the last four weeks, bullish investor sentiment has had a 41 or 42 handle on the percentage.

As this indicator is a contrarian one, bullishness readings in the high 40% area would be a reason for equity investor to become more cautious based on this indicator if viewed in a vacuum. Interestingly, this week's bearishness level fell to 28.42% versus the prior week's bearishness level of 35.37%. Consequently, the bull/bear spread widened to +14% versus last week's spread of +7%.

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