Thursday, June 30, 2011

S&P stays above 1250, but is it a rally?

As predicted from the extremely high pessimism in the market, the S&P 500 index hasn't yet crossed the 1250 threshold. In fact the index hasn't even closed below 1265 during this recent dip, and is now rising towards potential overhead resistance in the form of a declining tops trend line:
Sentiment is still very pessimistic, so my guess is that the S&P will rise through this trendline and officially start a new rally.

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