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The big question now is whether indices have stabilised for the time being and will go higher from here. Price action certainly points to the possibility that another bounce is in the offing (within the context of a general downtrend).
With little economic data of note this week, sentiment data becomes our best guide to the market, and it appears that it is reaching levels that can suggest a tradeable rally is on its way. The Investors Intelligence reading is always a good place to start. The reading for the week shows the percentage of bulls down to 24.7%, the same level as in late September. Crucially however, the bull/bear ratio is now below one, as seen in the chart below: