NEW ALL TIME HIGH, BUT LOW BULLISH SENTIMENT

It sounds crazy, but it is the harsh reality. Thursday the S&P 500 was hitting an intraday record above 1,990 and closed at an all-time high for the 27th time this year at 1,988. But, the retail bullish sentiment dropped from 32.4% down to 29.6%. This is the lowest weekly reading of bullish sentiment since May 2014.

Normally, when the equity market is making rally and hit new records, you expect to see bullish sentiment rise. But this is not true recently. The investors with bad memories of the bear markets are concerned not to make the same mistakes again.

The investors still don’t want to believe their eyes and accept the fact that this market is a bullish market. On the contrary after all new highs they are expecting and waiting for some correction.

The bullish sentiment between the US retail investors is lower now than the bearish sentiment. That is pretty rare, mostly seen after severe correction. So the fear and anxiety is on the market, which is good for buyers.

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The BFM Assets Team.