The latest sentiment data reveals that financial advisors continue to turn more upbeat on the market after October’s monster rally in stocks and equity exchange traded funds.
Investors Intelligence on Wednesday said its weekly advisor survey showed there were more bulls for the fourth straight week at 43.2%. The low reading for the bulls was 34.4% in early October.
At that point, the spread between the bulls and the bears was at its widest levels since the major market bottom in March 2009. [Bearish Sentiment Rises Despite 12% Bounce in S&P 500 ETFs]
The low point for the bulls in early October “coincided with the yearly lows for most indexes and indicators,” Investors Intelligence said Wednesday.
“Thus it should be no surprise that the near 15% record index surge that followed included a major rebound for the bulls,” the newsletter service added. “In fact the speed and size of the move prevented even more optimism as some newsletter editors noted that overbought conditions had been achieved and resistance levels were already at hand.”