Market is moving in a narrow range and trying to hold near recent HIGHs. Earnings season is winding down and has not yet provided much needed push to this market. Also geo-political issues are keeping lid on this market making it more vulnerable to downside. What shall we expect in coming weeks? BPNYA continues to remain below 70 mark and could not cross EMA(30) successfully. Volatility ($VIX) still at low levels which in turn kept this market near HIGHs. If NYSE breaks through MA(50) then next support will be near 10300 level followed by support near MA(200). Also divergence between Price and RSI, MACD is visible in below daily chart. Not much has changed in below weekly chart as divergence continues to be very visible. NYUD well above EMA(21) suggesting long term BULL trend still intact. As expected we might see NYUD moving towards EMA(21) which in turn would mean a pullback/correction in the market. As long as NYUD remains above EMA(21), the long term BULL trend gets benefit of doubt. Summer months are seasonally weak months for the market and a pullback/correction can be expected based on some signs visible in above charts. However, the benefit of doubt still remains on BULL side for now.
What does it mean for our Investments?
Market gets benefit of doubt on BULL side but be cautious...
Greg
5/18/2014 11:08:10 am
On Tuesday the BPNYA passed through the 30 EMA, which triggered a buy. It then immediately crossed back below the 30 EMA on Wednesday. Does that trigger a sale? Or do you give it some time and use a different trigger? Thanks
Admin
5/18/2014 02:56:00 pm
BPNYA barely crossed EMA(30) hence that would not count as BUY signal, also we are seeing multiple divergence on other charts mentioned above, hence if one is NOT invested then they should NOT take new positions. However if a new position was opened then one should be very careful as this is NOT a low risk entry. IF NYSE cannot hold support at MA(50) then it would be wise to stay out of this market as volatility will increase.... Comments are closed.
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