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A Bullish Data Point For Stocks

Published 04/10/2014, 11:15 AM

This morning the American Association of Individual Investors reported that individual bullish investor sentiment declined 6.9 percentage points to 28.5%. That compares to the February 6, 2014 level when bullish sentiment was reported at 27.9%.

All of the decline in bullishness showed up in the bearishness reading that rose 7.3% to 34.1%. The 8-week moving average of the bullishness reading declined to 36.9% and is the lowest level since this average was reported at 35.8% in mid July of 2013.

Net Positive

For investors, this measure is a contrarian one and is most accurate at its extreme. This week's lower bullishness level is one that is approaching an extreme and in and of itself is one positive reading for the future direction of the equity market if one is a bull.


Sentiment And The S&P 500

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