Investor sentiment is at historic pessimism.

Worse than MARCH 2020.

Worse than DECEMBER 2018.

Even in 2008 – similar spikes led to violent Bear Market rallies.

And lastly – when investors finally got this negative, the 2000-2002 Tech Crash was *over*. pic.twitter.com/o1fhONVIHC

— Macro Charts (@MacroCharts) January 27, 2022

Today’s Chart of the Day was shared by Macro Charts (@MacroCharts). The S&P is currently down nearly 10% from its highs, but that has been enough to force the bears out of hibernation in a big way. The Bull-Bear Spread from the latest AAII Sentiment Survey just plunged to its lowest level since 2013. That’s worse than March 2020 or December 2018, when the S&P 500 had dropped roughly 30% and 20%, respectively. As Macro Charts points out, this level of extreme bearishness is often seen at market bottoms. Survey data has its flaws, so we want to take this with a grain of salt. But overall, it’s encouraging to see this level of pessimism as the S&P 500 continues to test crucial support around 4300. For a full breakdown of the latest AAII Sentiment Survey, click here.