According to the American Association of Individual Investors, bullish investor sentiment increased to 36.47% from 30.45% in the week ended Wednesday, the highest since April, reports Steven Russolillo for The Wall Street Journal.
In contrast, bearish sentiment has dropped to 27.45% from 34.93%.
This has been the first time since May 3 that the percentage of bullish investors outweighed the bears.
Additionally, there have been four signs that point to improving sentiment:
- The euro has regained ground against the U.S. dollar. [Make or Break Time for the Euro ETF]
- The benchmark 10-year Treasury yields have increased above 1.7% from the record lows of 1.4%. [Treasury ETFs: Reverse Flight to Safety?]
- The CBOE Volatility Index has receded below 15. [Volatility ETFs: It’s Quiet Out There…Too Quiet]
- Small-cap stocks are outperforming so far this month. [Risk On: Small-Cap ETFs Leading the Way So Far in August]
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Max Chen contributed to this article.
For full disclosure: Tom Lydon’s clients own SPY.