The market kept on moving higher last week, and by the end of the week, the gains from the low on Oct. 15 had erased the losses from the three previous weeks.
With such a performance, investors rushed back to the bullish camp last week.
The AAII Sentiment Survey saw the bullish percentage jump from 39 percent to 49.4 percent, while the bearish percentage fell from 30.5 percent to 21.1 percent.
With the changes in the bullish and bearish percentages, the ratio of bulls to bears jumped from 1.28 to 2.34. The last time we saw the ratio change so drastically was in the last week of 2013 when the ratio jumped from 1.89 to 2.97.
The AAII sentiment survey wasn't the only sentiment indicator that changed dramatically last week, as the CBOE Volatility Index (VIX) fell sharply.
The so-called "fear gauge" fell 12.91 percent last week and at this point has dropped to half of what it was at the high on Oct. 15.
Despite the dramatic shifts toward the bullish camp, I get the feeling investors are still a little on edge right now.
With that in mind, the economic calendar is busy this week, with the October employment report due out on Friday.
Should the report fall short of expectations, we could see some strong selling pressure and the sentiment readings would likely shift back toward the bearish camp a little.
© 2024 Newsmax Finance. All rights reserved.