Less than 24 hours after asking whether investors were 'all in' on this market, today's weekly survey of bullish sentiment from the American Association of Individual Investors (AAII) showed that investors can't get out fast enough. After hitting a high of 57.6% last week, this week's bullish sentiment saw its largest one-week decline since January 2009. It now sits at its lowest point since early September when the S&P 500 was struggling to get over 1,100.
These large swings in bullish sentiment once again highlight the 'drive by' mentality and lack of conviction that investors have in the current market environment. When the headlines are positive, investors get bullish, but the slightest hint of any negative news sends investors scurrying for cover.