By becoming slightly more pessimistic in recent days, traders may have bought the stock market a bit of breathing room. But only a bit. The path of least resistance for the stock market in coming weeks will continue to be flat, if not down, until the excessive bullishness that prevailed in July has been fully worked off.
That’s the conclusion of a contrarian analysis of the mood among several dozen short-term stock market timers. Contrarians in particular are worried about one of my firm’s sentiment indicators that in July…
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