Stocks – Investors Just Witnessed the Perfect Bear Trap

Posted by Claus Vogt - Sicheres Geld via Money and Markets

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The stock market is said to be a vicious beast, trying to hurt as many investors as possible. And last week it hurt the bears by luring them into the perfect bear trap.

On July 7, everything seemed to be clear. Most European and some U.S. indexes had just broken below what looked like head and shoulder formations. This seemed to be the logical conclusion of the stock market’s advance off of the March lows, which was a very doubtful move with low volume and horrible fundamentals.

By now, though, we know that this breakdown was not the start of a new bear move … but clearly a bear trap. Instead of the expected follow through to the downside, the stock market turned on a dime. And in a short five days the S&P 500 gained a notable 8 percent!

….read more HERE

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