Market optimism is reaching a fever pitch that could be a cause for concern at least in the short term, according to sentiment surveys this week. According to Peter Boockvar, chief investment officer at Bleakley Financial Group, the Investors Intelligence survey, which interviews market newsletter writers, showed a bullish value at 60.9% on Wednesday and a bearish value of just 14.5%. Last week the respective levels were 60% and 16%. Likewise, the American Association of Individual Investors survey, which surveys retail investors, indicated a forward upside of 45.9% to 21.9%. The bulls fell nearly 6 percentage points while remaining at a high level. These polls are useful primarily as contrarian indicators: when sentiment extends in either direction, they serve as a cue for investors to move in the opposite direction. The results come with the S&P 500 up 8.3% year to date. Speaking about the II poll, Boockvar noted, “The Bear reading is a 6 [year] low and now we have a bull/bear spread of 46.4 which is a flashing red light in the short term.” “In conclusion, in the short term it is really worth taking note of where a market rests/consolidates/digests/corrects/retreats , etc… are now more possible,” he added.