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Chart of the Day:We’ve been noting recently that bullish sentiment from the American Association of Individual Investors (AAII) has finally exceeded 50% after nearly three years below that level.  In today’s Chart of the Day, we wanted to highlight another sentiment measure we track that has finally moved firmly into the bullish camp.  In fact, in the last ten years, it has never been more optimistic than it is now.  The indicator we’re writing about is the pace of net upward analyst EPS revisions for companies in the S&P 1500 over the last month.Since the GOP tax reform bill was passed in Congress and signed into law by the President, analysts have been steadily raising their EPS forecasts on the companies they cover.  As of the most recent data, there have been 757 companies in the S&P 1500 where analysts have raised EPS estimates compared to just 290 that have seen downward EPS revisions.  This works out to a net of +467, or 31.1% of the stocks in the index.  The chart below shows the rolling four-week total of net analyst EPS estimate revisions among S&P 1500 stocks since the start of 2008.  Not only has there been a major surge in the revisions spread in the last several weeks, but the spike higher has taken the spread to its highest level in over ten years, surpassing the previous high of 30.47% back in May 2010.

Source: Chart of the Day | Bespoke Investment Group