Market has managed to stay near HIGHs, moving in a narrow range. However, it is finding extremely hard to break through the old HIGHs. Whats in store for us in near term!!! BPNYA continues to remain above 70 mark suggesting to be cautious while opening new positions. Volatility ($VIX) is low but rising steadily which is NOT a good sign for markets as it would add to more zig-zag action. On daily NYSE chart, it is clear that previous trend line acted as resistance for this market. Market went sideways and remains above MA(50) for now. The heavy volume on last bar is due to quadruple options expiration which took place on Friday. NYSE weekly chart is clearly displaying divergence between Price and RSI, MACD which is certainly NOT a good sign. BUT this can go on for months, as there is NO way of timing this. For now we can ONLY say that a bigger correction or crash is on the way and we need to be aware of it. NYUD continues to stay above EMA(21) and a pullback can be expected which in turn would mean that market goes sideways or into pullback. Some of this action is already visible in the above charts. As of now, it appears that market is in bullish trend. We might see a pullback or sideways (zig-zag) action for a while but as long as NYSE remains above MA(50) and NYUD remains above EMA(21) benefit of doubt goes to BULLs.
What does it mean for our Investments?
Market remains bullish but be cautious... Comments are closed.
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