Market back at recent HIGHs, however this rally is riding on below average volume partly due to labor day holiday weekend. Will this resolve into market making NEW HIGH or will this become double top pattern!!! BPNYA very close to crossing EMA(30) which would trigger BUY signal. Volatility ($VIX) appears to be subsiding which is helping the market to creep higher BUT DO NOT get complacent. Market has over head resistance here from recent HIGHs, Will it be able to break it? As long as RSI remains above 50 mark, market can consolidate here and make NEW HIGHs but keep an eye on volume which appears to be very low as of now. Divergence between NYSE and MACD remains intact, this does not indicate that market cannot rise! Check the recent rally on lower volume which remains a concern. NYUD gave us a perfect low risk entry when it pulled back near EMA(21) BUT will this bounce materialize into market making NEW HIGH!!! Below chart will provide us subtle clues in next few weeks. NYUD needs to make a NEW HIGH for this market to continue its rally and RSI needs to reach 70+ mark else we are going to see a pullback soon. Market is at a point where it will soon make a decision where it wants to take a walk and we need to be prepared accordingly. This does not mean that the current trend is coming to an end, however we shall get enough clues to take that into consideration. Also lot of activity in geo-political arena can cause sudden market swings.
What does it mean for our Investments?
Market continues to be bullish but be cautious... Comments are closed.
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