An impressive rally in mid December 2014 from oversold conditions appear to have lost the strength during holiday season. Will it be able to gain the traction in New Year to make NEW HIGHs!!! BPNYA remains above EMA(30) while volatility ($VIX) is in zig-zag, driving market crazy. NYSE daily chart shows that market is trapped in a range for now. As long as market remains above MA(50) and MA(200), benefit of doubt goes to BULLs. NYSE Weekly chart is providing a better picture. Previous trend line (shown by dotted line) appears to have acted as resistance along with recent resistance near earlier HIGH. Market needs to breakout to new HIGH for this BULL market to continue. RSI is barely above 50 mark, however the trend is down which is NOT encouraging. MACD trend is also down. NYUD barely made NEW HIGH but could not sustain it and hence NO significant NEW HIGHs are made as of now. Typically, thats not a good sign for markets and usually we see a market decline in weeks ahead. However, RSI is still above 50 mark giving benefit of doubts to BULLs but the trend is down. Although, charts are giving benefit of doubt to BULLs, we wonder how long it can sustain this condition. We might see market decline in weeks ahead before a meaningful rally.
What does it mean for our Investments?
Market BULLs get benefit of doubt but be cautious... Comments are closed.
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