Bullish Investor Sentiment Subsides, Just as DJIA Reach New Highs

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Investors have been tempering their bullish sentiment, although 24/7 Wall St. is seeing a discrepancy in the data. Slightly lower sentiment should be of no great surprise now that the markets have stalled after hitting new high after new high on the Dow Jones Industrial Average up until the end of last week.

The weekly Investors Intelligence poll of investment advisors is said to be slightly lower on the bullish sentiment, at 47.4% versus 50.0%. What is interesting is that the bearish sentiment seems to contrast with the correction camp. The bearish sentiment was said to have drifted lower, to 18.6% from 18.8% the prior week. Those looking for a correction was said to have risen to 34.0% from 31.2%. By our take, that seems to be a conflict.

Note that, with the negativity around European Union banking due to what occurred in Cyprus, the sentiment may currently be worse than the poll indicated. On the other hand, the DJIA has risen 85 points so far on Wednesday to 14,541, which takes us right back to the peak of last Thursday.