By Gary Antonacci
The stock market hasn’t been able to generate much enthusiasm this year. The S&P 500 index is virtually unchanged since the end of February.
According to the latest AAII sentiment survey, which is often used as a contrarian indicator, bullish sentiment (expectations that stock prices will rise over the next six months) plunged by 11.4 percentage points to 21.1%. The drop puts optimism at a seven-week low and is the 21st consecutive week with bullish sentiment below its historical average of 39.0%. This is the longest such streak since a 29-week stretch in 1993, after which stocks made a sustained move to the upside that lasted six years.
There is an old saying that the market will do whatever is necessary to prove the most people wrong. Not only have investors been unenthusiastic this year, but the public has generally been skeptical, fearful, and lackadaisical about stocks during this entire bull ... Log in or subscribe to continue reading.