U.S. stock market bulls near four-month high

NEW YORK (Reuters) – U.S. stock market bulls rose to their highest level in nearly four months as equities continue to recover from their recent fall, according to a weekly survey of advisers by Investors Intelligence.

Bullish advisers rose to 57.3 percent in the latest week compared to 51.6 percent in the previous week and a recent low of 50.6 percent just prior to that. The reading was the highest since the middle of December when it hit 58.8 percent.

Bullish sentiment is often used as a contrarian indicator, with a high level of bullishness often interpreted to indicate an imminent fall in stock prices.

“At the end of last August’s market lows the bulls were as few as 29.4 percent, suggesting a time to buy,” said Investors Intelligence. “The latest reading suggests increased danger. At the October 2007 top, the bulls were 62 percent.”

(Editing by Kenneth Barry)

U.S. stock market bulls near four-month high