Still choppy, still consolidating

Mid-week market update: Stock prices are still consolidating sideways. The technical pattern could either be described as range-bound, or as a triangle. The market tested the bottom of the triangle this week, but support held.

The market indecision could be traced to the continued disagreement between fundamental and technical investors. Several weeks ago, I highlighted a Callum Thomas weekly (unscientific) poll of market sentiment showing a record level of technical bears combined with a high level of fundamental bulls (see Technicians nervous, fundamentalists shrug). The latest reading shows a continued bifurcation of opinion, though the difference in opinion is not as extreme.

The market may continue to trade sideways until fundamental and technical opinions begin to agree again.

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