AAII Bullish Sentiment Drops

With a gain of 3.7% so far this week, the S&P 500 is on pace for its best week of the year.  Looking at recent sentiment polls, however, shows that this week's gain came as investor sentiment continues to decline.  Whether you look at strategists' recommended equity allocations, advisor sentiment, or individual investor sentiment, all three measures dropped this week.

Below we highlight the weekly bullish sentiment survey from the American Association for Individual Investors (AAII).  In the latest week, bullish sentiment declined from 28.02% down to 27.45%.  This is still off the recent lows of 23.6%, but in a week where equities are on pace for their biggest gains of the year, it is a bummer (for now at least) to see that some investors may have been shaken out last week.