Market managed to bounce last week, however we have many hurdles ahead of us. Historically month of September is considered bearish for markets hence be cautious as we might get lot of zig-zag action with wide swings due to too many uncertain situations. What shall we expect in near term? BPNYA is finally below 70 mark and EMA(30) appears to be crossing MA(50) which will trigger late sell signal. Volatility ($VIX) is steadily rising and its impact can be seen as market went into correction. On daily NYSE chart, we can see that market managed to find the support and bounced back. However, it will need to overcome many resistance on its way up, right now it is running into MA(50) which can act as a initial resistance followed by another one at earlier HIGHs. On weekly NYSE chart NOT much has changed, the divergence between Price and MACD continues suggesting probability of further downside. However market can come near making another HIGH and the divergence can still continue to appear which is NOT uncommon. Eventually, the farther the divergence continues, the stronger is the move in opposite direction, hence at some point market will take a nasty turn. Market is entering into a historical bearish period of the year hence we shall see lot of volatility and possible decline. Also we have many hurdles ahead of us such as:
What does this mean for our Investments?
Market continues to remain bearish, hence be cautious. Comments are closed.
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