After a wonderful run in January of this year, market is currently in consolidation mode. Earnings season is behind us and next week is short trading week, hence expect light trading. What to expect next? BPNYA continues remain above 70 mark, as suspected it can remain above 70 for long time. EMA(30) is rising and soon will be close to BPNYA line but for now "wait n watch". Volatility remains low as market continues to creep higher. Remember, we are in caution zone. Below NYSE daily chart shows market is in consolidation mode from past two weeks. Ideally, this is considered healthy for a bullish market and another higher leg can be expected, however let's not forget that Debt ceiling decision looms ahead of us and until Congress acts, it would trigger a pullback/correction. Even on weekly chart, we can see market holding current level. Considering BPNYA is well above 70, it would be risky to enter now even though it is very tempting. The risk to reward ratio is not in our favor hence it will be wise to wait for next opportunity.
What does it mean for our Investments?
Market continue to remain bullish but be cautious... Comments are closed.
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