Markets continues to show strength and is achieving new Highs every week. Earnings season is halfway through and so far have NOT been disappointing there by providing lift to the market. How long will this rally continue! Below BPNYA chart is well above 70 mark and soon will be approaching 80. Based on past history, BPNYA can remain above 70 for months but entering market at this juncture would be riskier. However, once market gets tired we will get a SELL signal, have patience. Daily NYSE chart continue to march higher in a straight line, however be cautious and do not get tempted. On weekly chart, NYSE has clearly broken resistance near 8700 area and next resistance will be near 9300-9500 area (Not shown in below chart). This does not mean market will continue to move up until it reaches next target area, instead most likely we shall see pullback/consolidation in couple of weeks before the next leg higher. Although, it may appear that market is making new highs every week and does not appear to slowdown, BPNYA is well above 70 mark. DO NOT get tempted and enter market at these levels as it would be more risky, probability of pullback/consolidation is lot more than continuation of higher highs. Hence, it would be wise to wait for appropriate entry if you missed the rally. On the contrary, if you are invested then wait for SELL trigger to cash in your gains.
What does it mean for our Investments?
Market remains bullish but be cautious... Comments are closed.
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