This Spike In Bearish Sentiment Is Screaming For A Reversal

This chart argues that a rebound in U.S. stocks is well in order. Bearish sentiment has spiked, as measured by ta survey of the American Association of Individual Investors (AAII). Historically, spikes in sentiment have correlated with short-term market troughs, as shown below courtesy of Bespoke.


(Tip via Abnormal Returns)

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at