|McClellan thinks the indicator is for real, and June was an exception. See no reason not to believe him. We shall see. All such grinds, like we saw recently, come to an end, that's for sure... just a question when. Bob Furman's indicators also suggest that some volatility is not far off. Notice 95% "greed and fear" yesterday... 5 day ma of VIX at 9.46 is quite likely a record - while VIX was retesting its July low.|
From McClellan's article:
Most of the very low readings for this indicator mark meaningful tops for stock prices. It was just my luck that I called attention to it just at the moment when a wonderful exception appeared.
Now we have another very low reading, the lowest in 16 years to be specific. We have not had a reading this low since 2001. This makes an uncommon statement about how calm and orderly the market is at the moment. Calmness cannot persist, and orderliness tends to yield to chaotic action.