When you see the Bull-Bear Percentage Ratio get to current levels, it usually indicates an important bottom. Every week a poll of investment advisors is taken by Investor’s Intelligence of New Rochelle, New York. The poll tracks investment advisors, to see whether they are bullish, bearish, or neutral on the stock market.
The Bull/Bear Ratio shows the percentage relationship between the bullish and bearish advisors. High readings of the Bull/Bear Ratio are bearish (there are too many bulls) and low readings are bullish (there are not enough bulls).
Current levels indicate the bulls down to 36.7%, and the bears at 35.6%. When the bulls get below 40%, it’s usually time to start thinking long. While it’s time to start shorting, when the bulls get over 60%.
Cramer mentioned it in a column on Wednesday,
I know I am not a chartist, but I have sworn by two technical indicators all my trading life: the S&P Oscillator and the bull-bear ratio.
Any time we get severely oversold, I hold my nose and buy, any time we get the bull cohort below 40%, I have to buy something, and when it gets too close to 35%, you have to cover all shorts and get long.”
An indicator to ponder as the market tests important levels here intraday.