Bullish sentiment is up, just in time for a good correction. The latest poll from the American Association of Individual Investors reportedly showed that the bullish sentiment from investors had risen to 48.97% from 38.49%. Bearish sentiment was said to be down to only 21.58% from 29.34%. Even the Neutral crowd fell to 29.45% from 32.18% in the past week.
As a hint, the "smart money" uses sentiment as a barometer for peaks and troughs in trading terms. If everyone is bullish, the thought is that all or most of the buying has taken place.
A move up to what is still less than 50% bullish might not seem excessive, but a 10-point gain is far from normal.
Filed under: 24/7 Wall St. Wire Tagged: featured