LIVE MARKETS-Pessimism climbs while optimism edges up - AAII

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Main US indexes positive, but pare gains some; Nasdaq now up ~0.6%

Tech leads S&P 500 sector gainers; Materials weakest group

Dollar rallies; US crude gains; bitcoin up >2%; gold slips

US 10-year Treasury yield falls to ~4.45%

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PESSIMISM CLIMBS WHILE OPTIMISM EDGES UP - AAII

Individual investors remain divided on the market outlook, with both bullish and bearish sentiment above historical averages as neutral views thinned in the latest American Association of Individual Investors (AAII) Sentiment Survey.

Meanwhile, of the type of stocks individual investors are favoring right now, their most preferred group is growth, while their least preferred is small caps.

AAII reported that bearish sentiment, expectations that stock prices will fall over the next six months, gained about 3.7 percentage points to 36.3%. Bearish sentiment is above its historical average of 31.0% for the 14th consecutive week.

Bullish sentiment, expectations that stock prices will rise over the next six months, added 1 percentage point to 39.3%. Bullish sentiment is above its historical average of 37.5% for the fourth straight week.

Neutral sentiment, expectations that stock prices will stay essentially unchanged over the next six months, lost around 4.7 percentage points to 24.1%. Neutral sentiment is below its historical average of 31.5% for the 95th time in 97 weeks.

The bull-bear spread dipped 2.7 percentage points to 2.7% from 5.4% last week, suggesting an absence of a strong directional consensus. The bull-bear spread is below its historical average of 6.5% for the 13th time in 14 weeks.

In this week's special question, AAII asked its members what type of stocks they are favoring right now.

Here is the AAII graphic showing how they responded.

(Terence Gabriel)

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