Investors Turn More Bullish into Decline

Just a day after we got news that newsletter writers had turned more bullish following the declines of the last several days, today's update of investor sentiment from the American Association of Individual Investors (AAII) shows that individual investors are also getting a little bit more positive into the decline.  Even though the S&P 500 declined by 3.5% in the last week (including today's rally), bullish sentiment rose from 27.16% to 33.43%.  While this trend makes sense logically (lower prices should make investors more positive), in reality we typically see the opposite.

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