We're Witnessing A Dangerous 'Evaporation Of Bears' In The Stock Market

At 2,000, the S&P 500 is right near its all-time high. It's up an earpopping 200% from its March 2009 low.

Some Wall Street strategists believe this bull market could go for years longer.

But some measures of sentiment suggest investors should be more cautious.

"Sentiment has reached an extreme as Bears according to Investors Intelligence fell to the lowest level since 1987," said FBN Securities' J.C. O'Hara. "The markets persistent grind higher is a constant pain for any bear. The few that remain are the classic perma-bears and adjusting for them we are near rock bottom for bears."

Indeed, the unusually limited number of corrections and pullbacks has got everyone taking jabs at perma-bears like Albert Edwards, David Tice, and Marc Faber.

"% Bears down to 13.3%, lowest since Feb 1987," tweeted Pension Partners' Charlie Bilello. "Surprised it's even that high, are they counting Faber twice?"

The trouble with the lack of bearishness is that there isn't much keeping the bulls in check.

"The history of Sentiment reminds us that it's more dangerous to have an evaporation of bears compared to a plethora of bulls," said O'Hara.

Bilello tweeted the chart.