The S&P 500 hasn’t moved decisively in any direction over the past week, and as a result, sentiment saw little change.34.1% of respondents to the weekly AAII sentiment survey reported as bullish this week, down from a high of 37.5% last week.

Bearish sentiment took from those bullish losses as the reading rose up to 28.8% from 25%. Even though that is a higher reading, it is still the only other reading below 30% since last March.

Additionally, the pickup in bearish sentiment was not enough to make bears outnumber bulls. As such, the bull-bear spread saw its first back-to-back positive readings since November 2021.

Although over a third of respondents reported as bullish, this week’s predominant sentiment level was neutral.37.1% reported as such this week. That reading has now been above its historical average of 31.4% for seven straight weeks; the longest streak since January 2021.

Other sentiment surveys have likewise taken more optimistic tones lately despite a modest pullback in bullish sentiment this week. Factoring in the Investors Intelligence and NAAIM sentiment readings, our sentiment composite remains positive but is off from its short-term peak last week. 

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