WOW! Check out the reversals in market sentiment over the past week. The AAII report is through Tuesday so Libya would be "priced" in here. Still, the moves are massive. Bullish sentiment dropped to 36.6% from 46.6%. Bearish sentiment rose to 36.1% from 25.6%. Buying the dip may be out of favor for a period of time as fear has really crept back into the market.
The SPX has correlated very well with the AAII data as shown below. The divergence between the two is pretty large right now. Time will tell if the red line or blue line is wrong.
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