Newsletter Editors Waxing Optimistic

Optimism about U.S. stocks among investing newsletter editors has jumped to its highest mark in two months, according to the latest poll by the Investors Intelligence newsletter.

The percentage of editors who considered themselves bullish, or optimistic, on U.S. stocks climbed to 55.7% in the survey conducted Friday, from 52.3% the previous week. Optimism hasn’t reached this level since the week ended Jan. 21, when it hit 55.9%.

The percentage of editors who considered themselves bearish, or pessimistic, fell to 26.5% from 29%.

Technical analysts, who try to predict market moves based on price patterns and other statistical measures, track investor sentiment as a “contrary” indicator.

When bullishness reaches a low and bearishness a high, it’s considered a sign a rally could be near because investors who view the market less favorably may be saving cash to invest later. In contrast, many technical analysts see strong optimism as a sign that stocks may be poised to fall.