Friday, June 04, 2010

On the edge

The S&P 500 index has broken through the latest ascending bottom trend line, but not decisively.

Sentiment has become a little less pessimistic over the last week or two, which leaves more room for prices to fall, particularly if there's a slow decline from here that doesn't raise the panic level too quickly. (Sentiment is a contrary indicator: optimistic markets fall more readily than pessimistic ones.)

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