Throwing in the Towel Already?

It didn't take much, but after a sell-off of less than 3% in the S&P 500, individual investors are quickly throwing in the towel.  This week's weekly sentiment survey from the American Association of Individual Investors (AAII) showed that bullish sentiment declined from 46.58% to 36.63%.  This is the largest weekly drop since November (the last time the S&P 500 had a 3% sell-off), and it brings bullish sentiment down to its lowest level since the start of September.  With investors so quick to turn bearish after just a 3% decline, we can only imagine what will happen if the recent weakness turns into a more meaningful correction.

Subscribe to Bespoke Premium and receive actionable advice on topics across the trading spectrum!