Saturday, May 10, 2014

Bullish Sentiment May Be Indicating Oversold Equity Market

This past week's Sentiment Survey report by the Association of Individual Investors shows individual investor bullish sentiment declined further to 28.34% from the prior week's level of 29.77%. The weekly sentiment readings tend to be volatile and looking at the 8-period moving average shows the average sentiment reading is 31.5%, still a low level. Many of the survey participants indicated a neutral view on the market as the neutral reading was reported at 42.99%. The last time the neutral reading was above 42% was September of 1999 when the neutral reading was reported at 42%. To remind readers, the AAII sentiment survey readings are viewed as contrarian indicators.

From The Blog of HORAN Capital Advisors
Source: AAII

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