Market shows NO SIGNs of slowing down and continues to make or remain near NEW HIGHs. Everyone is expecting/waiting for a pullback or correction and this market is in NO mood to do just that yet! How long before next meaningful pullback/correction? BPNYA well above 70 mark suggesting to be cautious for opening new positions. Volatility ($VIX) still at lower levels, however do not get complacent. Not much has changed on daily NYSE chart below, market remains in strong bullish bias for now. As long as, NYSE remains above MA(50), the trend support bulls. On weekly chart, divergence is still visible between Price and RSI, MACD. NYUD suggests that chances of a severe correction is NOT in sight yet, however we might get a pullback/sideways action here due to the fact that NYUD is stretched away from EMA(21). When everyone is expecting a correction, market has a tendency to do exact opposite there by confusing many. In current scenario we might get a pullback or sideways action but a sever correction does not appear to be on the horizon just yet. A pullback will be followed by a rally making NEW HIGH which shall give us divergence on NYUD suggesting upcoming meaningful correction. A typical time frame of 1-3 months, which gives us the time frame of August/September 2014 for a possible meaningful correction. For now enjoy the rally as ONLY time will tell the full story...
What does it mean for our Investments?
Market remains in strong bullish bias... Comments are closed.
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