Thursday, May 15, 2008

Investor Bullish Sentiment Declines And Market Moves Higher

The American Association of Individual Investors' Sentiment Survey tends to be a contrarian indicator. True to form, this week the bullish sentiment reading declined to 45.16% versus last week's 52.81% and the S&P 500 Index moved higher by 1.4%. The less volatile 8-period moving average moved higher to 44% versus last week's 41.6. The bull/bear spread narrowed to 15% compared to 28% last week.

(click on graph for larger image)


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