Latest sentiment out of AAII shows bulls have totally abandoned the ship. We have not seen a low reading like this one since mid-2016.

Bears have been on the rise and the last spike in bearish sentiment is rather extreme.

With regards to the US markets, the banks have been in full implosion mode. Note how the KBW US ETF has collapsed lately, but we are approaching some relatively big support levels here.

Note the massive 45 USD level as well as the trend line since 2016.

AAII sentiment is so bearish, that we are starting to feel the contrarian in ourselves getting a bit excited about a possible mean reversion trade. Why not battered banks closing in green today?

Stay tuned!

Source: charts by Bloomberg