Oct 5 The number of bearish U.S. investment advisers jumped in the latest week and was at its highest since U.S. stocks reached a bear market bottom in March 2009, according to a weekly survey of investment advisers by Investors Intelligence.
U.S. equity bears rose to 45.2 percent from 40.9 percent, according to the survey, published on Wednesday. U.S. equity bulls fell to 34.4 percent from 37.6 percent, the lowest since Aug 2010 ahead of a strong rally in U.S. stocks.
Many investors often use sentiment as a contrarian indicator and look for it to bottom out as an indication of a buying opportunity.
"The difference between the bulls and bears expanded in negative territory at minus 10.8 percent, compared with minus 3.3 percent last issue," said Investors Intelligence.
"The spread indicator is now in buying territory, with the largest negative difference since March 2009. Now watch for a notable chart upturn to confirm a low risk for new general accumulation." (Editing by Padraic Cassidy)