Below I have posted a chart of the Dow. The Dow closed yesterday at 15191, up 62 points. The Dow is currently trading below its 50-day moving average. At the bottom of the chart, in honor of Joe Granville, I show his on-balance-volume. OBV looks bearish, and I assume that implies distribution. Therefore, I expect the Dow might continue its downward trend before working higher. I still think this market is too disoriented and dicey for me. I like a market where the good old forces of supply and demand are running the show.
And yes, I'm also thinking of that broadening formation which could signal big-time action at any time.
Let's take a look at the VIX, which has jumped up to 16.60. Looks as though option prices are reflecting increased volatility in the market. This may indicate some excitement coming up. I don't think the VIX will be saying ... Log in or subscribe to continue reading.
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