From past two weeks, market is moving in a narrow range though in pullback mode. However, it has managed to stay above MA(50) giving benefit of doubt to BULLs. Will this market make another attempt at All Time High OR Will it start a meaningful pullback/correction!!! Whats in store for us? BPNYA just went below 70 mark and it also crossed EMA(30) triggering SELL signal. Volatility($VIX) is still low but the gradual trend appears to be moving higher. We can clearly see on daily chart below that NYSE is moving in a very narrow range and has managed to stay above MA(50) so far. Divergence between NYSE price and RSI, MACD is very visible suggesting stronger correction ahead at some point in time, unfortunately it is too difficult to time it based on below chart. NYUD remains quite strong, well above EMA(21) however a pullback to EMA(21) can be expected which in turn would cause correction in the market as expected. BUT as long as NYUD remains above EMA(21), benefit of doubt goes to BULLs. Based on all the charts above it seems like we might see a correction/pullback in near term, BUT it might not break the BULL trend rather it would provide fuel to the next rally higher than previous high. Also earnings season will be starting in two weeks adding to volatility.
What does it mean for our Investments?
Market remains in pullback mode hence be cautious... Comments are closed.
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