Rally Is Starting to Hesitate

The rally that began last week appears to be starting to hesitate. Note on the first chart below, the last two entries, the Equivolume boxes, are very short, indicating a small trading range as resistance is encountered. Then see that the interior candle bodies are very small, saying that the averages are opening and closing near the same level. That too warns of indecision and a possible change of direction may be imminent. 

The second chart shows us that the VIX has gone right back to its very complacent levels, even though the markets have not returned to their highs.  Such complacency is bothersome. Moreover, the 5-day Arms Index has become overbought, although there has not been time for the same in the 10-day....253 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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