Market is moving in a narrow range as earnings season is underway. Market direction will be direct result of earnings guidance or geo-political tensions in days ahead. Better be cautious and alert! BPNYA still above 70 mark has managed to cross EMA(30) triggering SELL signal. Volatility ($VIX) appears to have spiked in past week and has potential to rise quickly driving this market down. NYSE daily chart shows sideways move and MA(50) can act as possible support for now. Also we can see divergence between Price and RSI, MACD which suggests more volatile action and downside ahead. As long as market remains above MA(50), stay invested however be ready to pull the plug as soon as NYSE drops below MA(50). Weekly chart shows that although the divergence between Price and RSI, MACD is nullified, both RSI and MACD could not manage to make NEW HIGH. This is clear sign of caution hence so be alert. NYUD continues to suggest market in strong bullish trend, BUT take a look at recent action. NYUD appears to be moving sideways rather than straight pullback suggesting possible range bound market action for few weeks just the way it did back in Mar-Apr 2014. This will allow EMA(21) to catch-up and rubber band effect will be nullified. Based on charts, it appears as if Market will move in a range for a while and we may get few volatile moves, however a possibility of pullback/correction still remains as a viable option.
What does it mean for our Investments?
Market remains in bullish trend for now... Comments are closed.
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