SENTIMENT IS MORE BULLISH

That is normally a red flag for us not being bullish or stay modestly bullish. The AAII Investor Sentiment Survey measures the percentage of individual investors who are bullish, bearish, and neutral on the stock market for the next six months; individuals are polled from the ranks of the AAII membership on a weekly basis. So if the retails are optimistic usually we turn pessimistic and vice-versa.

The bullish sentiment this week is over the mean 39%, which might be a warning signal some consolidation could come in the following ten days in the US markets. Jumped more than 5% since last week and has gained from February lowest level of 28%.

This week’s results:

Historical averages:

• Bullish: 39.0%
• Neutral: 30.5%
• Bearish: 30.5%

If you take a look at this chart below the long sentiment in the whole three months of March, April and May it was below 39% average and this week jumped over that 39% first time after three months, which is not a disaster and the market could go up still much higher, but be more suspicious. The trees never reach the sky.

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The BFM Assets Team.