Last night the WSJ amplified a growing concern which is that this stock market rally has gotten ridiculous, and that it’s due for a rough patch.
Specifically it cites technical analysts, who are highlighting two charts.
The first is the Dow Jones and its 10-day moving average. It’s been ages since it closed below this, which is a remarkable sign of strength and consistency.
The next is simply the VIX, the volatility index. It continues to plunge, as investors eschew “protection.” When complacency gets this low it’s a huge warning sign.
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