Chart of the Day - Thursday, August 8th 2019
August 8, 2019
Today's Chart of the Day was shared on Twitter by Willie Delwiche (@WillieDelwiche). It is a chart of the latest AAII Sentiment Survey results with the percentage of bulls in green, and the percentage of bears in red. Willie notes that the percentage of bulls fell drastically this week from 38% to 22% while the percentage of bears doubled! He adds that sentiment is back to the extreme levels that we saw at the December 2018 low, when the S&P 500 was down nearly 20%. Sentiment tends to be a contrarian indicator, especially at extreme readings. The fact that this weeks volatility caused such a large shift in sentiment while the S&P 500 is only 3% off of an all-time high is actually quite bullish.