Market has suffered a horrendous slide from beginning of this year but how far can this go? Are we close to a bottom or more pain to come ahead!!! Let's prepare ourselves for things to come... BPNYA is well below EMA(30) suggesting to stay away from the market while Volatility ($VIX) is rising slowly dragging the market further down. Daily NYSE chart suggests that market might have been stretched to extreme downside in short term and a bounce can be expected. However, the bounce might be short lived and NOT an end to this downtrend, BUT WHY? Weekly chart provides a better picture, it is very evident that market is not near a major support area (9000) hence there is a fair chance that after some consolidation or bounce attempt, the next move is probably going to be on the down side until it hits the support area. NYUD is clearly suggesting that downside volume is lot more than upside volume as NYUD is well below EMA(21) while EMA(21) is trending down. McClellan Summation Index is suggesting that more stocks are declining than advancing on cumulative basis which is in sync with the markets downward movement. Overall it appears that market has more downside in next 3 to 6 months and could take a while before it turns around. However, once the bottom is in then we might see a major BULL run for several months/years ahead.
BUT WHY?
What does it mean for our Investments?
Market remains in bear mode, stay way... Comments are closed.
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