The Investors Intelligence weekly newsletter survey showed a fairly sharp drop in the percentage of newsletters bullish on the market. Bullish sentiment fell to 34.8%. Bearish sentiment increased to 38%. This is a good contrarian sign.
In addition, the Consensus Inc. survey (which combines brokerage house analysts, hundreds of advisory services, and some other indicators is bullish for the markets prospects because many analysts and advisors are so bearish or pessimistic right now.
If we manage to see a strong move higher, it would be ideal to see skepticism like we did in March 2003.