Market appears to continue its trend of making new highs every week and currently consolidating. News about Cyprus out of Euro-zone has NOT been able to derail the market uptrend. This weekend Cyprus is going through a critical decision, will the outcome shake out this market!!! BPNYA continues to remain above 70 mark, however EMA(30) is very near MA(50) and the crossover will happen in next few days triggering late SELL signal. BUT as mentioned earlier, BPNYA can continue to remain above 70 mark for months and market may have some more room to run. Daily NYSE chart does display current market consolidation near HIGHs. Watch those arrows, market is moving higher while MACD and RSI are trending lower causing divergence which is also known as negative divergence and is also considered a leading indicator. However such a divergence is very effective if seen on weekly charts rather than daily charts. On weekly chart, NOT much has changed. In most likely scenario, market may continue its journey higher for another 3-4% before starting a meaningful correction. As market continues to make new highs without undergoing a meaningful correction, it becomes more and more riskier but very tempting. Market has a tendency to cause maximum pain and lure more investors. Also in next 2 weeks earnings season will start adding fuel to volatility.
What does it mean for our Investments?
Market remains in bullish mode but be cautious...
Samdman
3/25/2013 11:54:34 am
So if/when we get a cross of ema(30) below sma(50) would that be a confirmed downtrend, meaning a switch to inverse etfs is called for???
Admin
3/26/2013 02:19:14 am
First we need to understand few basics: Comments are closed.
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