- Earnings miss & weak guidance from BIG companies like Google, Microsoft, GE spooked the investors
- It was also 25th anniversary of 1987 crash - may be just another reminder!!!
- It was also "Options Expiration" day
No matter, what the reasons were! Fridays action has put current bullish trend in doubt. Lets see what is our guidance system telling us!!!
What do we see in below chart?
- BPNYA came very close to crossing EMA(30) almost triggering early SELL signal but then bounced off, however it is back above 70 mark. Time to be alert and cautious.
- Volatility seems to be stabilizing in a range and possibility of rising further which in turn means market decline or choppiness
- Mutual Funds - You can continue to stay invested as NO signals are triggered yet.
- Stocks/ETFs - Be cautious and make sure you have STOP LIMIT in place.
Be cautious and stay alert...