Again the former bulls fled to correction, lifting that number to 40.8% from 36.7% a week ago. A reading above 40% was last shown early Sep-13, just after another large market retreat. That proved a bottom for that decline and a similar low may have been achieved again. High correction readings don't last long. It takes a market drop to convince former bulls to shift here.
The spread between the bulls and bears narrowed again to 24.4%. The week ago difference of 28.5% showed a near 10% drop to below the dangerous 40% spread for the first time since November. The diminishing difference is a positive sign after 2013 ended with a 46.4% spread. That was the highest since October 2007 when it was 42.4%. In contrast August 2013 ended with the spread at 13.4%, close to the 10% (or less) reading that allows for buying. The bears haven't outnumbered the bulls (negative spread) since October 2011, after the correction from highs that April.