After two weeks of terror, US congress managed to resolve issues at hand "for now" and market rally continued. Earnings season is underway and will be a key factor in driving this rally further. Any disappointments will be an excuse for a pullback as market appears to be extended at these levels. How far will this rally continue!!! BPNYA continues to remain above 70 mark. For most part of this year, BPNYA remained well above 70 mark thereby NOT providing any BUY signals. One might think that the system is flawed, BUT if you observe carefully then it can be noticed that every rally was followed by a severe pullback. This only tells us that we may need to find an additional supplementary system to provide us better signals so that in a similar environment we can identify good entry signals. For now, market may have some room to run depending on earnings outcome. Market managed to make a NEW HIGH but shall soon experience some sort of pullback which is necessary and healthy for rally to continue. Divergence still in play, however if market rises far enough then underlying effect will be cancelled. Market is making NEW HIGH after the drama in Washington was resolved or shall we say the horror will continue in New Year. Market anticipated this move and was rallying before even the decision was out, as a result rally may have some juice left before it stalls. Earnings season is in full swing which shall be the key factor in driving this rally providing market direction.
What does it mean for our Investments?
Market is in rally mode for now, enjoy till it lasts.... Comments are closed.
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