Tom Lee (JP Morgan): AAII Survey Bearish Sentiment = Capitulation, Watching Credit Spreads and Risk Assets for Confirmation

On June 1 on Bloomberg TV, Thomas Lee, JP Morgan's Chief US Equity Strategist, said he was fading the net-bearish sentiment in the AAII Sentiment Survey (bull/bear ratio).  He thinks it shows bearish capitulation.  Tom also mentioned that credit spreads have widened a bit (pricing of risk) and equities need confirmation from other risk assets (high yield) in order to move higher.  He still thinks we're in a normal bull market correction but remains a selective "slow buyer".  Interesting, watch the video below.  The market better get above the 200DMA.  Lee made correct calls throughout 2009.  I also threw up a snapshot of the AAII Sentiment chart.

Video source: Bloomberg

For more on the AAII Sentiment Survey read this Forbes article and here's a chart snapshot from the video.
"Bullish sentiment rebounded 7.3 percentage points to 37.1% in the latest AAII Sentiment Survey..." [read]