Bullish Sentiment Plummets to Credit Crisis Low

Following the herd is rarely profitable. The herd is bearish. Such readings tend to be associated with capitulation rather than an initiation of a trend.

The number of individual investors who have a bullish outlook on the stock market for the next six months plunged to 21 percent, from 30 percent last week, according to a widely followed sentiment survey.

What's more, this is the lowest weekly reading from the American Association of Individual Investors since a March 2009 level of 19 percent, which occurred just before the S&P 500 collapsed to a 12-year low of 676.

American Association of Individual Investors Sentiment Survey:


Source: finance.yahoo.com