Pretty crazy so only the 3rd time in history the 10 Week MA of AAII bears crossed 50. What I find behaviorally fascinating is outside of the GFC the other occurrence came a few years after the '87 crash. $SPY pic.twitter.com/QPRxj5TVhl
— Arun S. Chopra CFA CMT? (@FusionptCapital) July 8, 2022
Today’s Chart of the Day was shared by Arun Chopra (@FusionptCapital). It’s a chart of the Wilshire 5000 since 1985, with a 10-week moving average of the percentage of bears from the AAII Sentiment Survey. Sentiment has been bearish all year, but as Arun points out, it’s reaching an extreme that has only been seen two other times in the past few decades – 1991 & 2008. In a comment to The Chart Report, Arun said “What is interesting about the ’91 spike in sentiment is it came a few years after a large crash (’87), much like what we’re are seeing post the Covid crash.”