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Stocks closed well off their highs on Monday, but on the NYSE, there were almost twice as many advancing stocks as there were declining stocks. The Advance/Decline (A/D) line made new highs again on Monday and is still above its moving average and trend line support. The sentiment has shifted sharply from August 26 as only 20.7% of investors were bullish then as compared to the 49.6% bullish reading from this latest sentiment survey from the American Association of Individual Investors (AAII). This is higher than the 48.4% reading from April 15.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
