A horse walks into a bar. Bartender asks, "Why the long face?" In the stock market, there are more long faces recently:
(1) The Investor Intelligence Bull-Bear Ratio fell for the third week to 2.15 this week after climbing to 4.43 three weeks ago—which was the highest reading since February 5, 2018 (chart).
(2) Turning to the AAII Sentiment survey (as of April 18), pessimism surged among individual investors about the short-term outlook for stocks, while optimism and neutral sentiment both decreased. The AAII Bull/Bear Ratio fell from 2.23 during the April 2 week to 1.13 during the April 18 week (chart).
