Last week we witnessed, how this Fiscal Cliff deal uncertainty is driving markets crazy. Earlier this month, market was climbing higher in anticipation of a deal and in few days it gave up some gains. The key question still remains, Will we get a deal!!! Below BPNYA chart shows we got our BUY trigger some time back but due to uncertainty regarding Fiscal Cliff deal, it is too risky to get back in the markets. Also in bottom portion of the chart, volatility appears to have sky rocketed in mere few days suggesting fear setting in the markets which will result in market decline. We are already witnessing this from past few days. NYSE daily chart displays market was rejected at resistance shown by dotted line and next support level is at MA(50) line. Expect to see lot of volatility based on talks coming out of DC till the time we get a final deal. As expected last week, long tails on top of weekly bars suggest further decline which we saw last week. Look at below MACD chart (bottom portion), it suggests further decline and possible breakdown. Only time will tell... What does it mean for our Investments?
Market is volatile, hence be cautious... Comments are closed.
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