Submitted by Lance Roberts via RealInvestmentAdvice.com,
Over the past few months, I have repeatedly written about being stuck within an ongoing trading range and warned of the dangers of a downside break. From last week:
‘The problem with going nowhere is that it makes managing money much more difficult. With the market having broken the bullish trend line from the February lows, as shown below, along with remaining overbought with a sell signal in place, the risk to the downside outweighs the potential for a further advance currently. With downtrend resistance from the previous highs pushing prices lower, the risk of a break below 2125 is elevated. Being a bit more cautious given the current technical backdrop will likely be prudent.’
This post was published at Zero Hedge on Nov 4, 2016.
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