Courtesy of Doug Short.
What does making sausage, making new laws and the price action of the Wilshire 5000 over the past few months have in common? None of them are pretty to watch while it is taking place!
The broadest of all indexes remains trapped inside of a multi-month trading range, having a hard time pushing above resistance that has been in place since 2008.
When considering how much risk exposure to have in a portfolio, this resistance continues to suggest lower overall equity exposure until resistance is taken out! The price point of the wilshire 5000 right now is where a ton of sellers came into the markets. With so many selling back in 2008 at this price level, should the markets find strength to get above, many will be caught flat footed. This index suggests lowering risk exposure and increasing it on a breakout.
(c) Kimble Charting Solutions
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