Bank of America (BoA) has recently modified its Bull/Bear indicator, and the latest reading has revealed a significant shift in market sentiment. According to BoA’s analysis, the indicator has reached 7.8, which is near extreme bullish territory. This level was last seen in February 2018 and February 2020, indicating that investor sentiment is becoming increasingly optimistic about the future of the market.

The Bull/Bear Indicator is a widely followed metric that measures the relationship between bullish and bearish sentiment among investors. The indicator is calculated by analyzing the percentage of survey respondents who believe the market will rise versus those who believe it will fall. A reading above 50% indicates a bullish majority, while a reading below 50% signals a bearish majority.

BoA’s revamped Bull/Bear Indicator has been in operation since October 1, 2025, and the latest reading is the highest it has reached since then. This suggests that investors are becoming increasingly confident in the market’s ability to continue growing, despite recent setbacks. The indicator last peaked at 8.9 on October 1, 2025, levels previously seen only in February 2018 and February 2020.

Interestingly, the most recent extreme bearish readings occurred in March 2020, October 2022, and March 2023. These periods were marked by intense pessimism among investors, with many expecting a significant decline in the market. However, these fears have largely subsided, as evidenced by the current bullish sentiment.

It is important to note that while the Bull/Bear Indicator can provide valuable insights into market sentiment, it is not a foolproof predictor of future market performance. Other factors, such as economic indicators and geopolitical events, can also impact the market and may not be reflected in the indicator’s readings.