Market has managed to stay in a range so far and showing resiliency, BUT for how long!!! It needs a strong catalyst to breakout of the range on either side. So what is the most likely scenario for now? BPNYA is well below EMA(30) and Volatility ($VIX) appears to be range bound as well between 12-14. Daily NYSE chart shows that MA(50) and MA(200) are acting as resistance, also MA(50) crossed MA(200) which is also known as "Death Cross" and is not a good sign. Break below 10600 area could result into a meaningful correction. Weekly NYSE chart is not providing any meaningful clues for now as market appears to be going sideways. However, RSI has dropped below 50 mark suggesting to be cautious. NYUD is way below EMA(21) and now EMA(21) appears to crossing EMA(42) which is also not a good sign. Charts are telling us that although market appears to be range bound, probability of correction is higher and one needs to be cautious and prepared for it.
What does it mean for our Investments?
Market remains in the range, be cautious... Comments are closed.
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