Powerful move for the bulls this past week as the broader market closed above a significant level of resistance. We faked a break-down out of this August to October range so the question is whether or not this is a fake break to the upside. Coming off the 52-week low the S&P has rallied 10% over the last two weeks. Interestingly, there have been zero days in this rally that were down more than-1%.
With statistics like that it’s no wonder that so many are calling for a pullback. Even bulls would like to avoid the “too much, too fast” thinking that typically accompanies such rallies. Perhaps option expiration will bring with it some shenanigans to aid in a pullback and work off some overbought indicators.
This is the 52nd weekly posting of ShrinkyLinks so that makes it official, no? I enjoy getting feedback and entering conversations regarding the articles I find throughout the week and share here. I hope that you enjoy the links and your weekend!
- The mystery of consciousness [Sam Harris]
- Brain imaging reveals why we remain optimistic in the face of reality [Wellcome Trust]
- Fall market jitters a SAD thing, Rotman paper suggests [University of Toronto]
- Struggling for Investment Answers? It Helps To Reframe The Question [Time]
- Mental illness and creativity revisited [Neuroskeptic]
- Envy may bear fruit, but it also has an aftertaste [NY Times]
- When the economy is down, alcohol consumption goes up [University of Miami]
- When too much optimism blinds us [The Emotion Machine]
- How self-efficacy relates to performance [PsychCentral]
- Mind games #7: Intrinsic and extrinsic motivations [GameSpy]
- Wall Street goes down but not out [Forbes]