AAII Sentiment Survey: Bullish Sentiment Falls to 43.2%, Bearish Sentiment Rises to 31.7%, Largest Drop Since February 2023

The latest American Association of Individual Investors (AAII) sentiment survey indicates a significant decline in bullish sentiment among retail investors. For the week ending July 26, 2024, bullish sentiment dropped from 52.7% to 43.2%, marking the largest weekly decrease since February 2023. In contrast, bearish sentiment increased from 23.4% to 31.7%. This shift resulted in the bulls minus bears spread declining from 29.3 to 11.5, reflecting a notable change in market sentiment. Analysts suggest that recent price movements have contributed to this shift, leading to a reduction in bullishness among investors.