Fake Out: A Rally Built On 'Hot Air'
Via NorthmanTrader.com,
Right at the time when markets were making new highs recently I mused whether this rally was based on hot air. I wanted to follow-up on this assessment in light of the recent small pullback and provide an update of some of the technical signals. The bottom line: The technical evidence appears to build on the “hot air” message and suggests that new highs may have been a fake out.