A Disturbing Lack of Fear

As the market pushes higher day after day, the lack of fear is reflected in the Volatility Index, known as the VIX, shown on the bottom of the first chart below. The scale for the VIX is inverted, so high points reflect a lack of concern. When traders show such a low level of concern, it is not a bullish sign, it is a bearish sign. It says that traders are being unrealistic in their euphoria. The current readings are therefore worrisome. 

Also reflecting the complacency is the Arms Index. Even during yesterday's trading, when the markets started to move lower, the Arms Index for the day was bullish, indicating that the heavier volume was still going to advancing issues, in spite of the sliding averages. The moving averages shown on the second chart below, are at overbought levels....270 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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