Shake It Up
Will the Federal Reserve shake things up? Ever since the market's sudden rise a week ago, we have seen nothing but indecision. The result has been light trading in a tight range. Perhaps the upcoming decision today will get things moving. Based on market action, however, it seems as if a positive outcome may be built in, while a negative decision will be disappointing.
Of continuing concern is the extremely complacent attitude among investors. We see that reflected in the Volatility Index (VIX) in the second chart below. Historically, the current level has been a precursor of market weakness. Coupling that with a return to very overbought levels in the Arms Index, both short-term and intermediate-term, and we have a situation where I believe the dangers of going to the long side of the market far overshadow the possible rise in response to news. If the market is not at the top now, I believe it is very close to it....271 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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