Market back near HIGHs but volume is low suggesting current rally is supported on lower volume. Earnings season is almost over and could not provide much needed push to this market. Geo-political issues are also keeping lid on this market. Where is all this leading towards!!! and What can we expect in summer months? BPNYA crossed EMA(30) upwards triggering a BUY signal, also Volatility ($VIX) remains at very low level which in turn helps this market to remain near HIGHs. MA(50) provided support and market bounced, as we can see in below daily NYSE chart. Divergence is visible on daily chart between Price and RSI, MACD suggesting to be cautious. Also check out volume in recent weeks which appears to be falling suggesting rise is Price is over a diminishing volume which is NOT a good sign. On weekly chart not much has changed, divergences remain intact. NYUD continues to support bullish action, however pullback to EMA(21) will cause a significant drop in the market and yet remain in the long term bull trend. As we know by now that Summer months are weak for the markets, hence this zig-zag action is NOT a surprise but rather expected. Many are expecting a pullback/correction and market often tends to do exact opposite causing maximum pain. Hence even though this market continues making new HIGH, the risk of sudden shock correction goes even higher. Remember, managing risk is key component and very essential in capital preservation/growth.
What does it mean for our Investments?
Market gets benefit doubt on BULL side for now... Comments are closed.
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