Negative divergence

Early on the 2003-07 bull market, Ken Fisher - the great US fund-manager - ruminated upon how long the uptrend would last. His answer: "until the last bear cries 'uncle,'" ie shouts for mercy. Not for the first time, Fisher was bang on the money. Wall Street rampaged higher for more than three-and-a-half years following his comments. The market only finally peaked in October 2007, after longstanding pessimists including Richard Russell had thrown in the towel.

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