Market appears to be on the roll, knocking down every high it makes each day. In other words, it is tempting us to get back in the game. How long can it continue this rally!!! BPNYA continues to remain above 70 and crossed EMA(30) from below moving upwards, however we do NOT consider this as BUY signal as BPNYA is above 70 mark and we are in caution zone. EMA(30) and MA(50) are converging fast and should crossover soon triggering late SELL signal. On daily NYSE chart, few key things are visible prominently. Market appears to be making NEW HIGH every day BUT check RSI and MACD. Draw a trend line on RSI and MACD, the last high was made in late Jan and trending down, also known as divergence. In short, it a clue telling us that rally will run out steam BUT market always have a tendency to tempt more people and cause maximum pain. On weekly chart, as expected market is moving higher and could continue its move higher for a while. Remember, the idea here is NOT to time the markets exactly but rather take clues and be ready when time comes.
What does it mean for our Investments?
Market continues to remain bullish but be cautious... Comments are closed.
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