The Rise Is No Surprise
After the big hit the markets took Monday, the subsequent rise is no surprise. As we see on the chart of the S&P 500, however, the drop was significant in that it broke the prior support and decisively penetrated the 1500 support level we had been watching. As has been the tendency since the sign of weakness in the prior week, volume is heavier on declines and lighter on rallies -- not a good sign.
The big down days in the past two weeks have been accompanied by large Arms Index daily numbers, bringing about the meaningful crossover in the 55-day moving average. This rally looks like an opportunity to lighten up at better levels....242 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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