Stocks quoted in this article:
The weekly figures from the Investors Intelligence (II) sentiment survey are out. Here are the highlights:
- Bullish sentiment among advisors rose to 43.6% (4.2% increase).
- Bearish sentiment among advisors fell to 25.5% (2.2% decrease).
- 30.9% of advisors foresee a correction in the market.
There were more bulls this week than last week, marking the first time bulls increased in three weeks. The S&P 500 Index (SPX) is approaching 1,400 again (as it did in late March*) but the bulls-minus-bears line is much lower now. This has bullish implications from a contrarian's perspective, indicating some staying power to the current market's uptrend.
The table below compares the current data to typical data since 2005. There are slightly fewer bulls than usual, but slightly fewer bears, as well. Therefore, there are more investors in the "correction" camp than usual.
*An earlier version of this article referred to this disparity between the SPX and the bulls-minus-bears line occurring in "early May," rather than "late March." We apologize for any confusion this may have caused.