This Broad Market Index Flashes "Caution"
Chris Kimble | Dec 18, 2018 02:34PM ET
The Wilshire 5000 is a must-follow stock-market index that measures the market in its broadest form. So when this index flashes caution, it’s best that investors pay attention.h3 Be Careful/h3
For the past 30 years, the Wilshire 5000 has traded within a very broad channel (1). In September, the index hit the top of the channel and reversed lower (2). This price action created a bearish monthly reversal pattern, triggering caution.
It is currently making new 2018 lows (below the February lows) while breaking down through important trend-line support off the 2009 lows (3).
This comes after the index created a bearish monthly reversal pattern off the top of the long-term channel.
Careful out there.
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