Market staged an impressive V-shape rally in last two weeks and currently approaching recent HIGHs, however can it sustain this rally for next two months!!! What can we expect in near term?
Last week, we did mention that entering market at that juncture is riskier and we see the results today. What will be market's next move? What are the charts telling us?
Market has managed to bounce back from earlier pullback, however it appears to be stalling. Does this market have enough steam left to continue this rally OR will it fall back!!! What are charts telling us!!!
All hopes market had regarding the deal remained as dreams and so far NO DEAL is agreed upon. Both political parties continues to exhibit grid-lock. Without a deal, market will decline swiftly as uncertainty grows. When will we get a DEAL?
It was a short week due to 4th of July holiday and Market continued to inch higher before Fridays jobs report crashed the party. However, earnings season shall start from next week and market should find support soon. Most likely earnings should drive the market higher for next couple of weeks. But DO NOT forget that Euro-zone crisis is far from resolution hence it will be wise to assume that this BULL move may not last for months unless we see concrete actions from Euro officials. For now enjoy the party till it lasts...
Market has been struggling last month to stabilize after experiencing a correction which started in early April. The encouraging news out of Euro-zone saved the day on Friday. European political leaders at least showed some progress during Euro Summit which brought back investors confidence FOR NOW. However, we have yet to see the real action. remember, actions speak louder than words and ONLY time will tell in coming months where we are headed. It seems like we might be starting NEXT BULL move here.... Based on WHAT!!!
Last week, our indicator gave us SELL signal immediately followed by a BUY signal. Why did this happen?
Typically we do weekend post but couple of folks asked above question...
BUY signal is an indication that market might be starting another UP move but that does not mean we have to ACT on it. If we are in dilemma or in doubt then best thing to do is wait and watch....
In our last market update, we indicated that we got breadth thrust and will get BUY signal. We can confirm this using our BPNYA indicator as shown below.
Past week markets posted an impressive rally and NYSE was up by 4.91% in a week. As we mentioned again-n-again markets can do whatever they want, all we need to do is to increase our odds of winning by being on right side of the market. How do we achieve this? Remember, its a game of probability...
What is NYUD?
What is BPNYA?