Interesting observation on weekly NYSE chart below:
All UP move has something in common -
- RSI above 50 and moving upward
- MACD black line moving above red line
Now check the shaded rectangular area below. MACD gave a signal but RSI was barely moving above 50 indicating fake UP move, once RSI was above 50 decisively then the trend continued higher.
Now derive your own judgement for this UP move -
What does it mean for our investments?
401K Investments: As of now, we should be invested in appropriate funds based on our Funds Ranking Sheet.
Stocks/ETFs: Invest in right setups with appropriate STOP LOSS in place.
Enjoy the party till it lasts...