Markets Are Stuck in a Trading Range

(6/8/22) Markets have not gone much of anywhere over the past seven days; markets opened lower Tuesday, coming off support established last Monday, and closed up almost 1%, back towards the top of the trading range we've been in for the past week. The challenge is how to make some traction as the markets address three problems: Markets have rallied to the top of a trading range, which is at the same level as April & May bottoms; the current buy-signal is getting over-bought, and beginning to narrow; and as the 50DMA comes down to the top of the trading range, it creates another level of resistance; as markets continue to move sideways, more and more downward pressure is being applied. This is why we have been suggesting raising some cash--and we followed our own advice yesterday, building a short-market hedge if markets start to break to the downside, setting up a re-test of the lows of early May. With more and more economic indicators pointing to a slowing economy, and the Fed beginning to tighten monetary policy, there are plenty of reasons to remain concerned about market stability. But, if markets DO move to the upside, it's a simple thing to remove those hedges and put our cash back to work.

Hosted by RIA Advisors' Chief Investment Strategist, Lance Roberts, CIO
Produced by Brent Clanton
--------
Get more info & commentary:
https://realinvestmentadvice.com/insights/real-investment-daily/
--------
Watch the video version of this report by subscribing to our YouTube channel:
https://www.youtube.com/watch?v=ZtJsfFrB_Kg&list=PLVT8LcWPeAujOhIFDH3jRhuLDpscQaq16&index=1
-------
Visit our Site: www.realinvestmentadvice.com
Contact Us: 1-855-RIA-PLAN
--------
Subscribe to RIA Pro:
https://riapro.net/home
--------
Connect with us on social:
https://twitter.com/RealInvAdvice
https://twitter.com/LanceRoberts
https://www.facebook.com/RealInvestmentAdvice/
https://www.linkedin.com/in/realinvestmentadvice/