Last week Cyprus got a deal and apparently could not derail the market uptrend. BUT earnings season will start in ten days and depending on balance between expectations and quarterly results along with guidance has potential to derail this train. What to expect in near term? Not much has changed in below chart. BPNYA continues to remain above 70 and its already two months. BUT watch how NYSE behaved once BPNYA went above 70, fresh gains are smaller and smaller while volatility changes very fast. Hence we call it a cautious zone, market will most likely make its last attempt to make new HIGHs before a meaningful correction. EMA(30) appears to be crossing over MA(50) which will trigger late SELL signal. On daily chart below, it is clear that market is in consolidation for a week now and could be waiting to make another move high. However, earnings season is on the horizon and expect volatility to rise. Weekly NYSE chart remains bullish and expected market appears to be making near high. What does it mean for our Investments?
Market continues to remain bullish, BUT be cautious and do not get tempted... Comments are closed.
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