This popular indicator says stocks have bottomed

A trader works on the floor of the New York Stock Exchange.
Getty Images

A leading sentiment indicator showed Wednesday that the number of stock market bulls out there fell to the lowest level since March 2009 amid the turbulent market of the last week, a contrarian sign that a bottom may be here.

The latest reading from the popular sentiment report by Investors Intelligence revealed that only 27.8 percent of financial pundits remain bullish on the market, down from 31.6 percent a week prior and a high for 2015 in April of 57.4 percent.

On the contrary, the number of financial advisors forecasting a bear market jumped to 26.8 percent from 22.5 percent a week ago and the highest level since 2011, according to the survey.

The theory is that if the majority of investors are bearish, then there's no one left to sell and the market can only go up from here.

More In Investing

CNBC ProHere are Thursday's biggest analyst calls of the day: Apple, FedEx, Boeing, Microsoft, Bumble & more
CNBC ProElon Musk's bitcoin backtrack could make Tesla shares even more volatile, Wedbush says
CNBC ProOppenheimer upgrades Lowe's to outperform, says hot stock can rise another 20%