Since my post published nearly two weeks ago on widespread market bearishness and a potential indication of a market turning point, the S&P 500 Index has bounced higher by 2.6%. True to form, this overly bearish sentiment was followed by higher equity prices. Also, sentiment has improved with the AAII bullish sentiment reading reported at 38.05% today, a 12 percentage point increase. This improvement in sentiment has also seen the bull/bear spread flip to more bulls than bears at +6 percentage points versus last week’s -13 percentage points. Although bullish investor sentiment has improved, the reading is not at a level suggestive of ‘irrational exuberance.”
