I was a little surprised to see the AAII sentiment survey results this morning. I had expected to see the Bullish Sentiment back over 40 giving reason to lighten up a bit – but it has dropped down to 31.76%. This could imply there’s some more gas in the tank and a bit more room to run before taking a rest.
One other point to consider is that this survey was probably completed BEFORE the Fed announcement yesterday – which likely ratcheted up bullish sentiment – but we will not have another read until next Thursday. So while the print is at 31, yesterday may have taken general sentiment to the mid-30’s+ (if they had drawn another poll last night). We’ll know more in coming days. As with all indicators this is a barometer, not a crystal ball.
If you found this post helpful, please consider visiting a few of our sponsors who have offers that may be relevant to you.
