Looking at the Euro STOXX 50, it too shows a similar pattern of approaching a resistance zone.
Similarly, the VIX Index is approaching a support level, indicating that equities may have difficulty advancing from current levels.
Even if this were a genuine upleg, I don't believe that the market is likely to overcome resistance in the near term, largely because of the low volume nature of the move and a stunning reversal in sentiment.
A stunning reversal in sentiment
Further to my post yesterday that indicated no signs of capitulation from sentiment models, I awoke on Monday morning to see the Ticker Sense Sentiment Poll, to which I am a participant*, show that over 50% of bloggers are bullish.
previous week showing over 50% bearish:
* For the record: My vote, which has been based on the readings of the Asset Inflation-Deflation Timer Model, were bearish for the both weeks in question.
Cam Hui is a portfolio manager at Qwest Investment Fund Management Ltd. ("Qwest"). This article is prepared by Mr. Hui as an outside business activity. As such, Qwest does not review or approve materials presented herein. The opinions and any recommendations expressed in this blog are those of the author and do not reflect the opinions or recommendations of Qwest.
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