“The increase in bearish sentiment may reflect the fact that the Dow has been up 10 out of the last 12 trading days. The blue-chip average is overbought and some investors are beginning to wonder when a short-term pullback will inevitably happen.”
The Investors Intelligence poll is telling a dramatically different story. Bulls increasesd to 48.9% versus bears of just 20.5%. Last week’s reading was 46% bulls and the January high was 52%. The bull/bear ratio jumped to 2.39, up from 2.16 from last week. This is well below the January 6 year high of 3.36, but also well above the average reading of 1.57.
All in all, the environment remains mixed. Small investors remain hateful of this rally while institutional investors have tended to take a contrasting opinion throughout the rally.