Wednesday, April 23, 2008

Will the Dow keep dropping?..

It's hard to say. Sure, the major indices are overbought and should move down from here. But then again, the CBOE Volatility Index (VIX) recently broke under its 200-day moving average.

The VIX typically drops when the market rises. So if the VIX can't get back above its 200-day, you should expect the market to stay flat or rally in the weeks ahead.

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