In last two weeks, Market bounced hard from oversold conditions but can it continue the rally!!! Market is reacting to every word coming out of Washington DC and it seems like both parties are back in deadlock over the weekend regarding Fiscal Cliff. No deal in sight so far hence expect more volatility ahead... BPNYA seems to be improving based on below chart, however it has yet to cross EMA(30) to provide any meaningful signal. Volatility has managed to stay low which has provided some boost to the bounce effort. The key question is will this rally continue any further!!! OR in other words, Is this bounce for REAL? Daily NYSE chart below displays, market is barely hanging on to the MA(50) line and needs more work to confirm this rally. Most likely we shall see a pullback and market will try to remain between MA(50) & MA(200) line until we get a deal. Unless politicians are forced to act they will keep bickering and pointing fingers rather than come up with a solution, its common theme and nothing suggest it would be any different this time. On weekly NYSE chart below, it looks like market has managed to bounce from the trend line, however MACD has not yet crossed over hence we are not entirely out of the woods yet. What to expect next?
What does it mean for our Investments?
Stay alert and don't fall into traps... Comments are closed.
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