Heed the Signals
Weak action has been rare in 2012, but today we saw no real bounce, extremely choppy action and a poor finish. Once again, the indices didn't lose much ground, and there still hasn't been a day with a loss greater than 1%. But the bulls are struggling a little more, and one has to wonder if folks are slowly inching to the exits.
Markets generally don't fall apart suddenly after making new highs. Tops are processes that play out over time. The dip-buyers lose some of their energy, the momentum cools off and the complacency is slowly replaced by nervousness. Underlying support needs to be tested a few times before it weakens and we see more aggressive downside....126 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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