On Thursday the results of the latest AAII investor sentiment poll was released. They showed a 1% increase in the percentage of bullish investors, which is statistically insignificant. The bearish percentage, by contrast, fell 5% from last week’s reading.
To be exact, 30% of investors polled by AAII declared themselves bearish on the market’s interim outlook. That’s the lowest percentage of bears since mid-August. By itself this percentage isn’t earth-shattering in its implication but it does suggest that investors have lost a little too much of their risk aversion in the immediate term. A few days of “correcting” should suffice to repair the sentiment among individual investors.