First Signs of Technical Breakdown ~ The Risk Averse Alert

Friday, August 07, 2009

First Signs of Technical Breakdown

Exactly one week ago I suggested, "We have entered a brief period of suspended animation during which time all manner of divergences among various technical measures corresponding with the most recent manifestation of the market's massive short squeeze unfolding since March '09 bottom ... likely will develop."

Precisely what we're beginning to see more or less everywhere. And probably what we will see a whole lot more of going into expiration.

Just look at every underlying technical measure typically presented here. You will see that, despite the market's continued rise, evidence of a technical breakdown is beginning to form across the board.


And what is up with elevated NYSE volume these past three days? The index has gone nowhere in the interim. More smart money bailing out, passing their shares to mutual fund money managers "desperate" to jump on board a stricken ship?

Finally, as per what's to come following top, check out the extent to which confusion prevails in responses to the following missive highlighting the probability of a pending market collapse...

Fast Money
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