A High Caution Condition
Last week we discussed a dichotomy of conditions on the risk levels.
The NYA Index's Fast Acceleration rate was in negative territory and moving up, but Institutional Investors were still in a Selling trend.
We asked if one cancelled out the other? Our answer was that "Actually, the question may not matter, because we never advise going against the Institutional Investors because they control too much of the stock market."
Yesterday, the Brits voted to leave their relationship with Europe with the Brexit vote approving the departure. This leaves the Fed in a precarious position as they try to pump in enough money in to offset the negative reaction today.