NOT so exciting earnings season and poor guidance put a pause on the rally, market went into a correction which started in early August. Last weeks bounce could not hold due to global conditions and market is desperately trying to find support. What shall we expect in near term? BPNYA has dropped below 70 mark, however volatility ($VIX) appears to be rising fast which causes market to be volatile and drop further. On daily NYSE chart, we can see that market is trying to find support. Any bounce from these levels will have to overcome resistance at MA(50). However, if market continues to drop then next support can be expected to be at 9100 area. As expected, the divergence (between Price and MACD shown by arrow) appears to be working as market went into correction. However, it does not mean change of direction as this could be considered as a normal pullback. Confirmed change in direction will ONLY occur when market drops below 8750 area when it enters BEAR territory. Things in September to watch out for:
What does it mean for our Investments?
Market in correction phase, stay alert... Comments are closed.
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