Sentiment Near August Low Means Stock Gains: Technical Analysis
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The rebound in the Standard & Poor’s 500 Index isn’t over because when pessimism about the market was this high in August, equities rose in five of the next six months, said Bay Crest Partners LLC.
The benchmark index for U.S. equities slipped as low as 1,249.05 on March 16 amid concern rising energy costs will hurt global economic growth and Japan’s 9.0-magnitude earthquake may tip the world’s third-biggest economy into recession. The next day, the weekly survey from the American Association of Individual Investors showed the ratio of bulls to bears fell to 0.71, the lowest since Aug. 26, Bloomberg data shows.