Fearless Dow at 70-Year Resistance
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The Dow is nearing a 70-year resistance line, at the top of a rising wedge and Fear levels are hitting lows not seen in the past few years.
In the past this combo has been a time to be cautious on the markets. Two-thirds of the time a rising wedge suggests lower prices are ahead.
From a portfolio construction standpoint, this set-up has reflected a time to lower risk exposure until a breakout takes place. Will it be different this time?
Fact or Myth: Is it time to respect risk due to this combo?
(c) Kimble Charting Solutions