The number of bears in our weekly market poll increased again this week, which is contrary to a lot of commentary we've been hearing lately about an overly optimistic investment community. As shown below, 59% of participants said the S&P 500 would be lower one month from now, while 41% said the index would be higher. In the prior week, there were 44% bulls and 56% bears, so the spread went from -12 to -18. We saw a similar drop in bullishness in AAII's weekly sentiment poll last Thursday.
When the stock market is hitting new highs, we're used to seeing bullishness pick up, but these days an overbought market brings the bears out.