NEW YORK (Reuters) - The proportion of bullish U.S. investment advisors fell below 50 percent for the first time in five weeks, hitting 46.8 percent in the latest week versus 51 percent the prior week, according to a survey by Investors Intelligence on Wednesday.
The five-week run above 50 percent during a period when indexes rallied was capped by a 54.2 percent reading with the market highs in mid-September. That reading showed an almost 15 percentage point rise from the end of July, and was just below 55 percent.
Investors often see bullishness as a contrarian indicator, meaning that when bullishness is running high the market may be due for a pullback. Investors Intelligence said a reading of 55 can often signal a market top.
“Backing off without entering that territory suggests another run up to highs is still possible,” said Investors Intelligence in its report. “However, with the averages more than doubling in less than four years the rally is certainly mature and likely approaching its end.”
Reporting by Edward Krudy; Editing by Chizu Nomiyama