More Proof Market Vulnerable to Collapse ~ The Risk Averse Alert

Tuesday, December 28, 2010

More Proof Market Vulnerable to Collapse

Just look what selling restraint is required to keep the NYSE levitated...

$NYAD cumulative

The disparity between the NYSE's skyrocketing cumulative advance-decline line and the real dollars and cents all this apparent excitement for NYSE-listed stocks in fact brings is nothing short of stunning...


Stark is the degree of selling restraint that must have been exercised over the past fifteen months amidst a decidedly advancing current whose net impact on the NYSE Composite index has been marginal at best.

If you wonder how days like May 6,2010 can happen, here is your explanation. Clearly, when selling can no longer be restrained the market is vulnerable to collapse.

Fast Money
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