Securities Research Services

Friday, August 24, 2007

Mixed Messages with a Technically Bearish Bias

Bearish sentiment readings have now reached lows not achieved since the 2003 bottom. The financials, at least so far this week, have been showing bullish divergences between price and money flow, indicating they are under accumulation.

Even so, technically the market is now at resistance and technical indicators tell us we should look for a pullback or a resumption of the downtrend.

What to make of this?

It’s probably best to pay attention to market technicals here.

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