With the equity market 70% off its lows, we have a mere 23% bearish sentiment reading on the AAII survey (American Association of Individual Investors), a level not seen since four-years ago. Imagine that at the March lows, bearish sentiment on this survey was running at 70%. Now it is 23%.I'm reading the headlines today and I see that, despite bellweathers JP Morgan and Intel beating analyst forecasts, the indices are down almost one percent. This is not good action.
Looking at the Investor Intelligence poll, the bearish sentiment is all the way down to 16% (the lowest since April 1987). At the March lows in the market, 47% of the investment newsletter editors were bearish. And for the traders, we see that Market Vane bullish sentiment is now at 57%, which is the highest since November 2007; at the March lows, the reading was 35%.
Meanwhile, Mark Hulbert reports that the sentiment picture is improving.