Why I'm Still Digging Gold for Protection

The markets still refuse to move above what has become a very difficult level of resistance. In terms of the Dow Jones Industrial Average, that level is the round number of 20,000. In the meantime, the overbought conditions we have been noting remain -- especially the longer-term Arms Index where moving averages are near historic overbought levels.

Since the middle of December we have seen a long consolidation with the type of narrow trading ranges that are usually a sign of a market high. On the first chart, below, we see that consolidation, and also note that the RSI (relative strength index) has turned down from a very overbought reading and the MACD (moving average convergence divergence) has gone negative....206 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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