And The ‘Dumb Money’ Goes All In Again

by jessefelder

The following is a recap of our recent twitter activity. To follow @TheFelderReport in real time send an email request

Interesting spot here for the NYSE Composite as it rises to meet the confluence of horizontal resistance and the underside of the uptrend line that dates back to the 2009 low.

As it runs into this technical resistance, both momentum and breadth appear to be putting in bearish divergences similar to those seen at the September high.

Despite these technical warning signs, the dumb money is now just as confident of higher prices as they were a little over a year ago just prior to the steep February decline that year that blew up the short VIX ETF ($XIV).