Markets Are Heading Towards Reversion In Stock Prices

Close Shot Digital Screen Candlestick Chart Stock Market Change Volatility — Stock Photo, Image

Image Source: DepositPhotos

Markets are operating in a very narrow trend channel; the sell-off on Wednesday occurred when markets touched the top of that channel and backed off, like clockwork. Markets have continued to stair-step higher like this ever since November. The MACD indicator, at an over-bought level, continues to trade flatly as the market grinds higher. There continues to be a negative divergence in momentum. The Volatility Index remains at historically low levels, and this entire structure in the market is not at all healthy. It cannot continue like this indefinitely, and will lead to a reversion in stock prices. The only question is, 'when?'

Video Length: 00:03:51

 


More By This Author:

Stocks And VIX Flash A Warning
Shale Oil - Should Investors Fear The Red Queen Effect?
This Is Nuts – An Entire Market Chasing One Stock

Disclaimer: Click here to read the full disclaimer. 

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.