Even in the face of global worries on all fronts, more investors are bullish than bearish on the stock market at least through the end of 2011 based on the survey we conducted yesterday after the close. As shown below, 57% of poll respondents said the S&P 500 would be higher by the end of the year, while 43% said lower. Those that said "lower" already have a pretty big head start this morning given that the S&P is down 25 points from where it was yesterday when we conducted the poll.
Many traders argue that we need to see excessive bearishness before we can reach a bottom. That's certainly not the case right now based on sentiment readings. The question is how low will the market have to go before the bulls throw in the towel and turn bearish?