Market took a nasty turn on last Friday due to employment report which was actually NOT very disappointing, however the expectations seems to be quite high. Earnings season starts next week which shall drive this market and also add to volatility. What should we be prepared for!!! BPNYA stays above 70 suggesting to be cautious and NOT to open new positions at this time. Volatility ($VIX) is low for now and market is near HIGHs. Friday's sell off is very visible on the daily NYSE chart below and it comes on higher volume suggesting further downside in coming days. BUT market may find support near 10400 area or MA(50), however we might experience a rough ride ahead. Divergence is very visible as market continues to grind higher, check the last bar which displays a long TOP tail which is often NOT a good sign and occurs usually before pullback/correction. NYUD continue to show bullish sign so far BUT if market declines this week with considerable volume then expect NYUD shall start moving towards EMA(21). As long as NYUD remains above EMA(21), bullish trend gets benefit of doubt and any pullback/correction will provide chance to get in the market. Considering earnings season is near and market showing signs of weakness, it would be wise to NOT open new positions and be cautious.
What does it mean for our Investments?
Market remains bullish but be alert... Comments are closed.
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