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How About It, Smalls?

This is a syndicated repost courtesy of Slope of Hope – Tools for Traders. To view original, click here. Reposted with permission.

Although opinions are diverse here, I think we can collectively agree that the broad stock market (represented below by the Wilshire 2500) is, shall we say, elevated. As in: never been higher. As in: not a bargain. As in: insanely overpriced. Seriously. Nosebleed territory.

What, if anything, will be the first to break? My money is on the small caps. Let’s keep an eye on this diamond pattern.

Taking a few big steps backward, we can see this diamond in the broader context of the past couple of years. Get the diamond to fail, and the trendline fails, too.

Now I shall return you to the Live TimCam showing me attempting to generate content from this lifeless market of ours during the weekend.

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

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