Last week, we saw the slide in the market which was much awaited and if one was NOT prepared then most likely took a hit. Market was overdue for a correction for quite sometime and now that the correction is here, how much longer it will continue!!! What shall we expect in weeks ahead and prepare accordingly? BPNYA gave us a SELL trigger much before the actual slide in the market, there by giving us enough warning before the event. As we can see, Volatility ($VIX) rose quickly and as a reaction market was dragged down. It appears based on below chart, that market broke the MA(50) support and is now headed towards MA(200). It does have a support near 10600 area and could make a bounce attempt here but watch out below. On weekly chart, market is holding onto to current trend line shown by dotted line. NYUD is pulled towards EMA(21), however not touched it yet and has a potential to do so. But this can also suggest a low risk buying opportunity as shown by the yellow dotted circles in below chart. As long as, RSI remains above 50 line, market has a chance to continue its bull rally. Based on all the information above, we might see a bounce attempt here and market may come back to test MA(200) support. It won't be a smooth ride but more like roller coaster for next few weeks. Traditionally month of August is considered weak period for the market hence this should not be a surprise. Market may remain stuck between MA(50) and MA(200) for a while before making a strong attempt for another HIGH.
What does it mean for our Investments?
Market in correction and it may not be over yet...
Dave
8/11/2014 03:39:19 am
BPNYA chart link you have in the strategy post plots BPNYA a lot thicker. Can't figure out what to change so that it looks like your analysis. Can you please take a look? thanks! following is the link you have:
Admin
8/11/2014 05:12:38 am
All links are updated. Comments are closed.
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