Earnings season is underway and so far Market appears to be struggling to remain near recent HIGHs. Can it sustain current levels without surrendering to summer doldrums!!! What shall we expect in weeks ahead? BPNYA continues to remain above 70 mark suggesting caution and it crossed EMA(30) earlier triggering SELL signal. Also volatility ($VIX) (although at historic low levels) appears to be rising steadily or shall we say spiking inadvertently which in turn is having effect on the market as it struggles to maintain current levels. Below chart shows, NYSE is in range bound action yet above MA(50) giving the benefit of doubt to BULLs. However RSI and MACD are trending down suggesting further downside ahead. Weekly chart remains strong, however a possibility of pullback/correction is highly probable as we can see that MACD and RSI failed to make new high. As mentioned earlier, we did expect range bound action in market based on behavior exhibited by NYUD. Either we could see a period similar to MAY of this year where market goes sideways in a range bound action which allows EMA(21) to catch-up to NYUD OR we might get a pullback/correction in the market in which case NYUD will be pulled towards EMA(21) providing possible low risk entry. Based on what we see in recent chart action, it would be wise to stay out of this market for now.
What does it mean for our investments?
Market although in bullish trend be cautious and alert... Comments are closed.
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