Sunday, November 21, 2010

AAII Survey - WE 11/17

Quite the reversal on the sentiment survey this week. Bulls reversed down from last week's reading of 57.6% bullish to now 40% bullish. The prior week's reading was the second highest in five years so a reversal should have been expected. Bearish sentiment increased to 32.5% from 28.5 the prior week. We now have 1.3 bulls for every bear, a more neutral level.
Looking at the correlation of the SPX to the AAII report the question now is did SPX just put in a significant top? There is evidence from this chart that it in fact did. Investor Intelligence also just registered a very bullish reading but I must admit I find the correlation of Investor Intelligence to be less reliable to the SPX.


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