by Michael Tarsala, CMT
Market pessimism is at its lowest point since August 2010, based on the latest AAII survey.
Only 22% of survey respondents are bullish on the markets, based on the latest AAII survey; more than 50% of those surveyed were bullish on the markets just five months earlier.
This is what the S&P 500 has done since bearish sentiment last plumbed the depths: it’s up 30%.
The very bearish sentiment could help the S&P 500 as it tries to close the week solidly above the 2011 highs (the black horizontal line on the chart).
That could possibly clear the way technically for a run back into the 1400s.
Here’s Bespoke’s chart on AAII Bullish Sentiment since 1/09, charted against the S&P 500: