CHART OF THE DAY: Investors Are Getting Really Pessimistic

In the wake of the Italian elections, bullish sentiment measured by the American Association of Individual Investors (AAII) plummeted from a high of 41.8 percent down to as low as 28.4 percent last week.

Meanwhile, the Dow Jones Industrial Average continued its bullish march to an all-time high.

This week, AAII bullish sentiment ticked up to just 31.1. This is well below the historical average of 39 percent.

"The Dow’s new record high gave some AAII members reason to believe the current rally will continue," wrote Charles Rotblutt in a post on Pragmatic Capitalism. "It also heightened concerns other AAII members have about the markets being overbought and due for a pullback in prices."

Meanwhile, bearish sentiment rose by 1.9 percentage points to 38.5 percent in the same time period. This is much higher than the historical average for bearish sentiment, which is 30.5 percent.

Here's the chart from Bespoke Investment Group: