Market was showing few signs of life, it felt like the correction might be coming to an end, almost turning around and then a surprise move!!! Right when we thought, Greece elections are over and things might improve but NOT so fast!!! Coming week, all eyes are on Euro-zone summit. Last Thursday, finance heads of 4 major European economies (Germany, France, Italy, Spain) met to decide on an agenda for the summit to save Euro fate. What shall we expect!!! Did all our patience paid-off ? Absolutely, see how BPNYA was converging towards EMA(30) and would have come close to crossing it generating BUY signal! But as market made a surprise move on Thursday, BPNYA changed the direction. In short, more volatility might be in store for us before the beginning of a stable trend. Below NYSE chart shows how MA(50) line acted as resistance and market is back below MA(200). We need a concrete action from policy makers in Euro as well as at home in US. Unless we have dire situations, normally politicians DO NOT act which means expect more volatility and hence stay cautious. Have Patience...
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