By Jon S. Strebler
After August’s worst drop in years, the US stock market posted its best rally of 2015 in the past two weeks. Those familiar with the pendulum tendency of markets (a move too far one way often leads to a big move the other way) recognize this as business as usual. Recall also our comment a couple of weeks ago that US stock investors were, according to Mark Hulbert, the “most bearish they’d been in 15 years,” which as a contrarian indicator implied the possibility of a good rally. And so it came to pass.
Now the Dow Industrials are back above 17,000, and the market is bullish again. Or so I’ve read. But by what reckoning? Large round numbers like 17,000 do have some significance, and should the Dow be able to stay above that number for awhile, that would indeed be a positive for US stocks and, by ... Log in or subscribe to continue reading.