Investing.com -- Wall Street traders are eyeing a potential rebound in the S&P 500 as investor sentiment takes a hit.

The bull-bear ratio, a key indicator tracked by the American Association of Individual Investors survey, has dropped to 0.3 in the week ending on Wednesday. This is the lowest it has been since September 2022.

The bull-bear ratio is a measure of market sentiment. Its fall indicates a decrease in optimism among investors, which could lead to a decrease in the buying of stocks. The last time this ratio was this low was in 2009, following the global financial crisis.

Historically, such low levels of the bull-bear ratio have been associated with bear-market bottoms in US stocks. A bear market bottom is a period when prices of stocks reach their lowest point before starting to rise again.

Therefore, periods of low investor sentiment, as indicated by a low bull-bear ratio, have previously coincided with opportunities for a rebound in stock prices.

This pattern suggests that while investors may be feeling pessimistic, Wall Street traders are potentially seeing an opportunity for a rebound in the S&P 500.

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