Investors Intelligence is reporting the highest reading of bullish oriented news writers since May of 2011. Those writing articles with a bullish sentiment now make up 52%, while bearish views are down slightly from prior week at 29%. Many who have been predicting a correction have become bullish, with those in the "corrections camp" now at 19%, the lowest in 4 weeks.
With VIX at July-2011 levels and the CS Risk Appetite Index clearly in the neutral zone, this may be time to become more cautious on the equity markets. While fundamentals remain strong, one needs to watch the technicals more closely.
|CS Risk Appetite Index (source: CS)|