Take few minutes to look at BPNYA current chart below and lets see if you can come up with answers regarding following questions:
- Is this right time to SELL or BUY ?
- If you missed the rally so far then is it right time to invest in 401K ?
- If you are already invested in 401K should you get out now since everyone expects a PULLBACK ?
- What is probable to happen when BPNYA is above 70 ? BUT does it mean it will happen immediately ?
BPNYA is above 70 which means a high "probability" of pullback but that does not mean it will happen immediately. Typically market can remain in over extended territory for days/weeks/months but historically market has only managed to climb 3-4% once BPNYA is above 70 and crossed EMA(30). However BPNYA has yet to cross EMA(30) which is our SELL signal. Hence patience is absolutely necessary in such market conditions, getting in the market at the right time is the KEY to success.
401K: Be patient, if missed the rally and wait for sell signal if already invested.
We hope it is becoming easier for you to understand market probability and direction, so that you can apply it with intelligent informed decisions...