Stock advisors sentiment index hits late-2007 levels

An indicator of investor sentiment on Wednesday showed stock market optimism had hit levels last reached in late 2007, the start of the last bear market and a possible sign that the recent rally is ready for a pullback.

The Investors Intelligence Advisors Sentiment index, which gauges the stock advice of about 150 newsletters and other paid market-advice outlets, said the portion of positive stock advisers jumped to 51.6% in the past week, the highest since December 2007.

Bears fell to 19.8%, the first time since October 2007 that the percentage fell below 20%.

A parallel with October 2007 is notable because the S&P 500 /quotes/comstock/21z!i1:in\x (SPX 1,031, +2.86, +0.28%) hit a peak that month and then tumbled for 17 months, losing nearly two-thirds its value by the time it hit a March low. (more)