zerohedge.com / By Lance Roberts via RealInvestmentAdvice.com / Jul 9, 2017 3:55 PM
More Volatility – Still No Movement
Last week, I discussed the issue of “lot’s of volatility with little movement” stating:
“The last couple of weeks have experienced a sharp rise in price volatility. While stocks have vacillated in a very tight 1.5% trading range since the beginning of June, there has been little forward progress to speak of. However, notice that support at 2415 (50-dma) has remained solid as ‘robots’ continue to execute their program of ‘buying the dips.”
“This lack of progress keeps us ‘stuck’ with respect to portfolio positioning.”
I remain very cautious on the overall market, currently, and the deterioration is leadership remains concerning. However, the trend remains bullishly biased which keeps portfolios allocated on the long side for now.
With that said, the recent “sideways” movement has NOT worked off the previous overbought condition of the market on an intermediate term basis as shown below.