Investor Bullish Sentiment Weakening

Until today I had been surprised individual investor sentiment was holding up at an elevated level. However, with the AAII Sentiment Survey release this morning, for the week ending 4/22/2020, bullish sentiment fell 10 percentage points to 24.9%. This is the lowest bullishness reading since October 10, 2020 when bullish sentiment was reported at 20.3%. A majority of the formally bullish respondents flipped to the bearish category this week, where it rose 7.3 percentage points to 50%.%.

The sentiment readings are contrarian ones and looking at them on their own, a further weakening would be one positive metric for higher equity prices.