Complacency Meets A Shooting Star

Complacency Meets A Shooting Star

Markets are still pushing highs, but the price action is starting to shift. Today’s large shooting star comes right at the top of an extended move. Sellers are starting to show up.

Nothing has broken yet, but this is exactly the type of setup where complacency creeps in and hedges get cheap. With breadth weak and vol near its floor, the asymmetry is starting to tilt.