A New Wall to the Upside
After two strong days, a new wall seems to have been encountered on the upside. The rise abruptly halted, apparently in response to the fiscal fisticuffs. The result was a day with a very tight trading range, telling us of a difficult standoff. Examine Wednesday's posting on the first chart, below. Looking back, we see that similar tight trading ranges are typical of highs, not lows.
The overbought condition we looked at two days ago was exacerbated Tuesday, but became a little less extreme Wednesday. Nevertheless, this is a more cautionary reading than at any time in the past two years. I believe the markets are ready for a sudden decline, which presents an opportunity for aggressive traders to go to short positions....245 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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