Bullish sentiment on the part of individual investors took a slight hit this week, but given the back to back 100 point declines in the DJIA to start the week, it is probably more surprising that bullish sentiment didn't decline more. According to the weekly survey from the American Association of Individual Investors (AAII), bullish sentiment fell from 42.24% down to 41.84%. We would note, however, that this is the eighth straight week where bullish sentiment has been above its bull market average, which is the longest streak since January. Investors have gotten a reputation for being quick to head for the exits during this bull market, so it will be interesting to see if today's sharp decline has any impact on next week's numbers.
While bullish sentiment only saw a slight decline, bearish sentiment rose from 23.0% up to 28.3%. That 5.3 percentage point increase was the largest one week increase since the beginning of August.