Wall Street Turns Most Bullish Since 2022 as Retail Quietly Sells

Sentiment surveys and positioning data show Wall Street desks are now the most bullish on US equities since 2022, a sharp reversal from the caution seen earlier this year. Strategists point to resilient earnings and rate-cut expectations as the main drivers behind the shift.

Yet the divergence is notable: Robinhood's own retail order flow shows customers quietly reducing exposure even as institutional bullishness accelerates. This gap between professional and retail positioning often precedes short-term volatility as one side is forced to capitulate.

Traders should watch whether retail selling is a leading indicator of a pullback or simply profit-taking after a strong run, especially with index-level valuations stretched relative to historical norms.