Thursday, December 27, 2007

Bears Lead Bullish Sentiment Lower

The contrarian Sentiment Survey indicator reported by the American Association of Individual Investors, as of December 26, 2007, shows individual investors continue to be bearish.
  • The bullish level declined to 30.0% versus last week's 35.9%.
  • The 8-period moving average fell to 34.7%. This is the lowest level since August 2006 when the 8-period moving average equaled 34.3%
  • The level of bearishness increased to 50% versus last week's 47.2%.
  • As a result, the bull/bear spread came in at a -20% versus last week's -11%.
In addition to the 7-year chart, I have included a shorter snapshot beginning December, 2005.

(click on charts for larger image)

bullish investor sentiment graph as of December 26, 2007
2-year bullish investor sentiment graph as of December 26, 2007


No comments :