AAII Bearish Tilt Could Be a Reliable Contrarian Indicator

The S&P 500 Index (SPX) has been consistently hitting new highs for some time, but this hasn’t encouraged the membership of the American Association of Individual Investors (AAII). Every week, the AAII asks its membership how they feel about the stock market over the next six months. They can answer bullish, bearish, or neutral. The table below shows the SPX along with the four-week average of the bulls minus bears from their survey. You can see the bulls minus bears line is negative, meaning a higher per ...