# What Market Sentiment is Telling Me

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Hey, Ross here:

To close out the trading week, let’s look at a chart that tells us a bit about where investors’ heads are at.

**Chart of the Day**

![](https://stocksurgedaily.com/wp-content/uploads/2024/04/Screenshot-2024-04-25-at-11.17.43 AM-1024x422.png)

This is the American Association of Individual Investors weekly market sentiment chart.

And as you can see, bullish sentiment fell steadily throughout the month, from 47.3% on April 3 to 32.1% on April 24. 

Meanwhile bearish sentiment increased from 22.2% to 33.9% over the same period.

Many would look at this as a negative.

But for me, it’s a good sign. I explain why in the Insight of the Day below.

**Insight of the Day**

**Using sentiment to gauge when the market might shift is counterintuitive as sentiment is a lagging indicator**.

At the end of March, bullish sentiment was at 50% according to the above chart – almost a 52-week high.

Right after, the market fell.

Similarly, at the beginning of November last year, _bearish_ sentiment also peaked at 50% – right before the market surged.

The market moves first, sentiment follows after.

That’s why I like seeing the bullish sentiment falling fast – because it likely means the pullback ending sooner rather than later.

And that’s also why _now_ is the time to get in position in a select group of stocks…

Stocks that could rise the fastest when – or even before – the pullback ends.

**[Here’s what you need to know to find these stocks.](https://pro.stealthmodeinvesting.com/?tambid=23707)**

Embrace the surge,

![](/wp-content/uploads/2024/01/unnamed-12.png)

**Ross Givens**  
Editor, _Stock Surge Daily_