US stock market sentiment is heating up — but not overheated yet
• AAII bullish sentiment just jumped from 35.1% to 45% — a sign of growing optimism as the S&P 500 hits new highs.
• However, it's not yet in "frothy" territory, which starts above 50%. Last July, a 52.7% reading preceded a 9% market drop.
• For now, positioning doesn’t look overcrowded — but if bullish sentiment pushes past 52%, caution is warranted.
• Key question: can the S&P 500 hit 6500 or even 7000 before sentiment overheats?