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Then there is the S&P 500. Nope, nothing wrong here although the SPX is approaching major resistance from the 2000 top. It is worth noting that the healthier looking SPX (from a risk/reward standpoint) is more broadly representative of the US economy than the narrow Dow 30.
So what conclusions are to be drawn from the above? None really. This is just another view of a market that demands successful investors and traders be tuned to all time frames and possibilities. My view remains that the markets remain in high risk territory. A look at the weekly VIX chart supports the idea that stocks are running on borrowed (pun intended) time and that risk vs. reward is way out of whack. VIX has snuck out of the falling wedge and thus far held support.
Of course, the majority of the financial services apparatus led by the Wall Street fife and drum corps, will keep marching bullishly forward until one day the picture changes and the herd is forced to do what it always does; sell low. Relevant ETFs for trading long or short are DIA and SPY.
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INFORMATION The opinions of FSU contributors do not necessarily reflect those of Financial Sense. |
