Bullish sentiment declined again this week, marking the fourth weekly decline in a row. Based on the weekly survey from the American Association of Individual Investors (AAII), bullish sentiment declined from 42.3% down to 41.8%. The last time AAII's bullish sentiment survey declined for four straight weeks was from late September through mid-October 2012. Since the recent peak in bullish sentiment four weeks ago, bullish sentiment has declined by close to eleven percentage points.
In the prior three weeks that bullish sentiment declined, the market kept rising to new bull market highs, in turn causing frustration on the part of investors. With yesterday's 1%+ decline in the S&P 500 and an even larger drop (2%) in the Russell 2000, many of those former bulls are likely feeling some sense of vindication.