Don't Get Lulled Into Complacency
Complacency still dominates our markets. On the second chart below, I have again shown the volatility index (VIX), since it continues at levels not seen in over five years. Look back at history and note that low fear levels coincide with market highs. So there continues to be a warning here to not be carried away by the bullishness of the crowd. There are times when one has to be a contrarian, and I see this as one of them.
Yesterday was the eighth consecutive session in which we have had an extremely tight trading range, indicating that the market has encountered a very difficult resistance level. It is the same area touched last year, and not much below the all-time highs. That is posing a major blockage to further upside progress. Be ready to go short on any sign of weakness out of this area....275 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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