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Crowd psychology says this ‘fool’s rally’ in stocks could fool bears

Simon Maierhofer
Crowd psychology says this ‘fool’s rally’ in stocks could fool bears

From its May 1 high, the S&P 500 Index fell 153 points in two weeks, the biggest pullback since December. Since Monday, however, the S&P 500 (SPX) has bounced as much as 91 points. The obvious question is this: Will the “fool’s rally” relapse, or will it fool stock-market bears and continue higher?