Investors got more bullish, but not too bullish

AAII Bullish Sentiment rose to 41.7% from 28.0%. Individual investors got more bullish as the S&P 500 hit record highs, and the Fed delivered its first rate cut of the year. This indicator has room to run until contrarian bearish levels well into the 50% range. Using 2-year and 4-year standard deviation bands (Bollinger Bands) suggest overbought territory for AAII Bulls from 53.7% to 56.3%.

Chart 1: AAII Bullish Sentiment with overbought and oversold std dev bands