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A major signal lurks
Commentary: Keep your eye on the volatility

Lawrence G. McMillan

Dec. 1, 2010, 12:01 a.m. EST


MORRISTOWN, NJ (MarketWatch) — When a bullish market is too steady for too long, overbought conditions occur. These are normal and are usually worked off by a (perhaps) sharp, but short-lived correction.

However, there are other kinds of extremes that arise that are not so easily worked off, nor so short-lived in their ramifications. One of those is now building up, and may signal a very volatile market in the near future.


cont http://www.marketwatch.com/story/a-major-signal-lurks-2010-12-01