Market appears to have pulled back a little, Will it find a support at MA(50) line? Earnings season will start from next week driving volatility higher. What to expect next!!! As we can see from below chart, BPNYA can remain above 70 mark for months. BUT look at NYSE index in bottom portion of the chart, once BPNYA is above 70 mark, it is very tough for the index to make BIG gains, moreover we see lot of zig-zag action. We got our late SELL signal last week. On daily NYSE chart below, it is very clear that NYSE has pulled back to MA(50) line. We might see a bounce attempt here, however the strength of the bounce will depend on earnings outcome next week. Not much has changed on weekly NYSE chart BUT watch the MACD line in bottom portion of the chart. Every time, black line crosses red line, it suggests a change of direction. However the cross-over has not happened yet but may happen soon! Does it mean market is done making new HIGHs!!! NOT exactly but probability of change in direction is higher even if market makes a NEW HIGH.
What does it mean for our Investments?
Market may change its direction hence be alert... Comments are closed.
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