While a lot of analysts and traders are pointing out that the sentiment isn’t quite as pessimistic as you’d like to see it at good market bottoms, I think you have to keep in mind that positive sentiment in a strong market isn’t that unusual.
It’s only when sentiment reaches a positive extreme is when it becomes a problem.
Despite all the consternation of whether the S&P or Industrials can break out to new highs, the broader NYSE Composite (NYA) has already hit new highs. Overall, I can’t see that as a bearish sign. I would expect the S&P 500 and Industrials to follow the NYSE Composite.
And the Russell 2000 was hitting new highs last year…