With the spread between bullish and bearish investors surging to its highest since the first week of 2017 (and bears at their lowest since March 1st), Investors Intelligence sees more than a little complacency spreading into financial markets.
In their latest note, II notes that newsletter writers classified as bulls rose to 60.2% this week - the first time above 60% since March 1 (and up from 57.8% last week). This has triggered Investors Intelligence to warn:
"This is a new major warning calling for defensive measures to protect profits, renewing the same signal from earlier this year.
In the historical comparison, the bulls ended Jan-1987 at 64.6% and then returned to 60.8% that Aug after further market highs" ahead of October crash.
Still, it's probably different this time.