A Confluence of Oversold Signals
The market fell apart once again as President Obama seemed to dig in his heels on the fiscal cliff situation and a grand compromise on tax increases looks like wishful thinking. The good news for the bulls is that the major indexes have finally created a confluence of oversold conditions in our indicators. The bad news is that somehow the sharp decline in prices has failed to create any meaningful fear as measured by the CBOE volatility index (VIX).
That's a real head scratcher, but we also know that we want to be careful about picking bottoms until there has been a surge in bearish sentiment....304 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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