Even though the S&P 500 is up around 3% from last week, all the volatility has helped to keep a lid on optimism. This week’s AAII survey showed a second straight weekly increase in positive sentiment, with 26.64% of investors reporting as bullish. Although it is off the lows of 21.6% from the first week in August, bullish sentiment remains more than one standard deviation below its historical average.
Bearish sentiment, on the other hand, has fallen more considerably from its more extreme reading at the beginning of the month. Down 8.5 percentage points from