After an incredible rally, market is looking for direction. Current global events are bit conflicting and earnings season is underway which might be able to provide a new direction. Charts are telling to be cautious... BPNYA below 70 mark and appears to be in downwards direction. Watch volatility index ($VIX) which has stayed low for several months and appears to be inching higher. A high probability of spike cannot be ruled out at these levels which might suggest to remain cautious. Daily NYSE chart is displaying divergences across the board but daily divergences usually don't result in any meaningful results. Weekly NYSE chart suggest that market is in pullback but not showing any signs of danger yet as RSI is above 50 mark. Even if market drops further, 11000-11200 area shall prove to be a strong support. NYUD still above EMA(21) along with RSI remaining above 50 mark, however situation can change. McClellan Summation Index still showing signs of strength. Charts are telling us that even though we may not see obvious signs of danger, we need to be cautious as market may experience a bumpy ride ahead.
Market is undergoing pullback but remain cautious... Comments are closed.
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