Market managed to stage an impressive bounce BUT is this for real or just another trap? Lets take a look at charts and see if we get any clues regarding market direction. BPNYA well below 70 mark and yet to cross EMA(30) signalling BUY signal, however volatility ($VIX) appears to be subsiding which in turn allowed the market to rally for past couple of days. Daily NYSE chart shows that market managed to get above MA(50) suggesting strength, however this strength came on low volume which remains a concern. Weekly chart is telling us a different story, MACD still showing bearish pattern BUT RSI managed to remain above 50 mark during this correction. NYUD gave us a low risk entry when it pulled back towards EMA(21) and RSI managed to remain above 50 mark here as well. Based on the information above, benefit of doubt goes to BULLs but we DO NOT have solid confirmation yet. Also the fact remains that by the time we get confirmation our entry point is behind us.
What would constitute confirmation here?
What does it mean for our Investments?
Market BULLs get a benefit of doubt this time... Comments are closed.
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