Monday, October 04, 2010

Looks like a short-term top

The S&P 500 index has been lingering around the rising upper trend line for a couple of weeks now without making a decisive breakout.

In the meantime, price sentiment has become moderately positive, which is a short-term bearish signal. If I had to wager I'd say the trend line will keep holding and that prices will head lower. I'm not going to bet my money on that, however, because I want to see a long-term bearish signal in the charts before investing in a bear mutual fund.

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