Earnings season is NOT offering any support to current market so far and only driving it crazy. Also geo-political issues in Ukraine are weighing on the market. What shall we expect in near term? BPNYA is below 70 mark and appears to have changed course for now moving downwards. Volatility ($VIX) still low but has potential to change quickly. Daily NYSE shows the zig-zag action from early March 2014 and NO clear direction so far. Market is currently range bound and it will not be a surprise if market drifts further down towards 10300 area. Not much has changed on weekly NYSE chart below. Divergence is clearly visible between Price and RSI, MACD. Its ONLY matter of time when such a divergence will resolve into a meaningful correction in the market. Remember, larger the divergence results into severe correction. NYUD remains well above EMA(21) hence current BULL market remains intact, however a pullback in NYUD towards EMA(21) cannot be rulled out which in turn means a correction in market can be expected. What does this mean for our Investments?
Market gets a benefit of doubt on BULL side but be cautious... Comments are closed.
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