Friday, July 22, 2011

ISE and CBOE send warning signals

Lower Highs in the Indicator paired with an initial spike down are a clear warning sign that the overall structure of the market is not healthy signalling that Investors are 'trigger happy with a short fuse'.

We find similar patterns in the CBOE and ISE data.

These patterns were also present in 2007-2008. Resemblence is NOT Causation, but caution is warranted.

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