With the S&P 500 hitting new all-time highs again this week, the bulls are back out in force. According to the weekly survey from the American Association of Individual Investors (AAII), bullish sentiment rose to 52.69% this week, up from last week's reading of 49.4%. This is the highest reading of bullish sentiment we have seen all year. It is also the 6th highest reading of bullish sentiment in the current bull market and only the 17th time it has exceeded 50% since March 2009.
While bullish sentiment is at a lofty level, the decline in bearish sentiment was even more extreme. In the latest week, bearish sentiment dropped from 21.07% down to 15.05%. This is the lowest level of bearish sentiment in the entire bull market, and just the 10th time bearish sentiment dropped below 20%.