Dick Arms has what may be the most challenging technical charts I have seen in a while for the bulls:
“There are times when the market gives the impression it is fading into nothingness. Volume becomes very low, trading ranges become very small, volatility becomes very low. Also, there is very little change in market levels and day-to-day fluctuations are minimal. Looking back at history, when that happens it is almost always a sign of a market high point.”
The chart — the VIX is inverted — below is a warning:
Complacency? Dow vs. VIX
For more info on institutional research, contact:
RICHARD W. ARMS JR.
800 WAGON TRAIN DRIVE SE ALBUQUERQUE, NM 87123
OFFICE (505) 293-4438 FAX (505) 298-2833
(VIX inverted so tops appear to match Dow tops).