Market has managed to bounce back from earlier pullback, however it appears to be stalling. Does this market have enough steam left to continue this rally OR will it fall back!!! What are charts telling us!!! BPNYA has almost crossed EMA(30), close to triggering a BUY signal. Volatility remains low for now, however this can change quickly. NYSE daily chart suggests that this bounce might not be able to sustain based on top tails on recent bars suggesting pullback in the cards. Will MA(50) act as support if market pulls back!!! Weekly chart continues to display divergence between Price and RSI, MACD. Divergence suggest bigger pullback/corrections ahead of time, however it is extremely difficult to time it. We mentioned earlier that if NYUD fails to make a NEW HIGH then this market has further downside ahead of itself. Based on below chart, it appears that RSI is trending down along with NYUD slightly turning and not able to make new high yet! This might be early signs but it is suggesting that market might have further downside ahead. Based on all above charts, it seems like market might experience further pullback, however nothing is guaranteed. Also newly released FED meeting minutes suggest that tapering is NOT off the table and might continue until they have clear signs of economic slowdown.
What does it mean for our Investments?
Market bounce is stalling, be cautiously optimistic... Comments are closed.
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