Data Source: AAII
This updated chart gives a nice visual of the data we presented yesterday. As you can see above, it has not paid to get short below the high 30’s (bullish percent), but it has paid to get long below 30 (when pessimism was still high). The print from yesterday was 26.84%. There is still a wall of worry to climb.
AAII Sentiment Survey Results Still Favor Bulls (Even After Bounce)
As always, no indicator is foolproof, but it is valuable to have a number of factors in your model to weigh the odds in your favor and then manage your risk accordingly.
