What about last week’s eye-popping pop in the Bull/Bear Ratio to 3.65, the highest reading since June 17, 2003? The bull market is more than two years old, and now the ratio is the highest it has been over the entire period. That is a bit worrisome.
However, there have been times in the past since 1987 when a ratio of 3.0 or more was followed by higher stock prices sometimes, following a brief correction. Then again, such elevated ratios have also marked a few significant tops. Beware.