Market Stress – Post FOMC

Post-FOMC long term market stress.

Markets with high stress levels tend to reverse but timing is hard.

The main idea behind Market Stress is that in market with high stress levels, there is more risk in the current direction of the trend and more opportunity in the opposite direction.

In the chart below, the stress levels in the Russell have exceeded their levels from 2009 –

Long Term Market Stress, Sept 18, 2013

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