Market has so far managed to remain near HIGHs, however the double top pattern mentioned last week is still NOT nullified. What is most probable outcome at this juncture? BPNYA dropped below EMA(30) and as mentioned in last weeks post, the BUY trigger was fuzzy. Also, lets not forget that Volatility ($VIX) appears to be rising steadily in past few weeks. NYSE has managed to stay above MA(50), as you can see it got a bounce near MA(50) last week. BUT take a look at RSI & MACD, both are trending down which could suggest that market might breakdown below MA(50). Weekly NYSE chart is also suggesting further downside based on divergence between Price and RSI, MACD as shown by arrows. NYUD is also suggesting that market may remain range bound for a while. RSI continues to remain above 50 for now. All signs are suggesting a possible pullback or range bound action. This in itself does NOT constitute market breakdown or significant correction. As long as NYUD remains above EMA(21), this market cannot breakdown. Every time NYUD comes near EMA(21), it provides an opportunity for low risk entry into market.
What does it mean for our Investments?
Market gets a benefit of doubt on BULL side but remain cautious... Comments are closed.
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