Don't Bet on a Breakout Any Time Soon

A week ago, it looked as though the advance that started nearly a month ago could go further, since we were not yet getting overbought indications on some of the indicators. That has changed. In the interim, we have continued to see unusually low trading ranges, telling us of intense overhead resistance. 

All the way from short term to long term, the moving averages of the percentage trading ranges have gone to nearly unprecedented levels. We did see a small gain in the various market averages in the last week, but the lack of volume or increasing trading ranges says the new marginal highs are not a believable breakout, but just an intense push against a formidable resistance level. ...223 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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