The number of investors “Bullish” has dropped off a ton in the chart below. On 2/18 the 500 index closed at 1,343 and yesterday it closed at 1,286. This decline represents less than a 5% drop in price, yet look how the current sentiment level compares with the highs on 2/18!!!
CLICK ON CHART TO ENLARGE
I am a little surprised to see the number of investors Bullish drop off as much as they have. (see link to sentiment chart here) If history is any kind of guide since the 3/2009 lows, these sentiment numbers suggest that for the short-term, the market could see a little rebound around support!
With the markets at/close to support dating back to the lows in 2009, does this low of a sentiment number mean too many bears have come to the party before they should have? If history is any guide, this sentiment number would suggest that you might want to be cautious right now if you are loaded to the gills on the short side of the fence.