The latest weekly survey of U.S. advisors by Investors Intelligence, a provider of research and technical analysis, showed that the number of bulls rose to 62.7% last week, the highest level since December 2004. Investor Intelligence considers a number above 55% a danger zone, as it is a strong, contrarian warning of a potential market top. Advisors have been extremely bullish on U.S. stocks for the past 11 straight weeks as the S&P 500 rose 7% over the past three months and is trading near all-time highs. Nearly a year ago, when stocks posted a sharp January-February decline, the bullish count fell as low as 24.7%. In the latest survey, the percentage of bearish advisors fell to 16.7% as they reacted to the recent market strength. That is the fewest bears since August 2015. In a report, Investor Intelligence said that advisor sentiment is a leading indicator and that excessive optimism most often peaks prior to the indexes.
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