Poll: More Newsletter Editors Pessimistic

Pessimism about U.S. stocks has risen for the first time in six weeks, according to a poll released Wednesday by Investors Intelligence newsletter.

The percentage of financial newsletter editors considering themselves bearish, or pessimistic, jumped to 28.3% last week from 23.7% the week before, when it hit its lowest level since July. Bearishness reached a three-year high of 42.7% shortly after the Sept. 11 terrorist attacks.

The percentage of editors considering themselves bullish, or optimistic, also dropped last week, to 43.4% from 45.4% the previous week. Bullishness touched a four-year low of 33.7% after the attacks.

Technical analysts, who try to predict stock moves based on price patterns and other statistical measures, see a peak in optimism and a low in pessimism as a sign stocks may be poised to fall. When most investors are bullish, they already have committed most of their funds to the market, or so the theory goes.

By contrast, technicians see a peak in bearishness as a sign that stocks are due for a rally because investors who view the market unfavorably already have sold shares.