Trying to predict the direction of stock prices based on the shape of lines in a chart often seems akin to reading tea leaves. In today’s markets, however, so-called technical analysis may not be completely wide of the mark. This month’s gyrations have opened a window into investor psychology. Initially, the market rally accelerated, as retail investors led a “dash for trash,” buying the shares of companies seen as particularly exposed to the coronavirus crisis—even including bankrupt rental-car giant Hertz. Then, after June...

Source: Wall Street Journal June 19, 2020 13:07 UTC