In recent weeks/months, market has managed to make NEW HIGHs and shows no signs of stopping or slowing down. How long will this continue? Will we ever get a pullback or sideways action for low risk entry? BPNYA is now above 70 mark suggesting to be cautious as this may not be the best time for low risk entry. Volatility ($VIX) remains at low levels for now but be prepared for wild swings. NYUD has gone parabolic and well stretched above EMA(21) suggesting the move in the market may slow down going forward as NYUD needs to come closer to EMA(21). Take a look at below NYSE McClellan Summation Index, observe the dots (also known as parabolic SAR indicator). Especially when NYSI is at extreme levels (such as above 700 and below 400) and based on change in SAR, the short term directional move is quite predictable or probabilistic chances of change in move is higher. For now, it appears that the current trend might continue for some more time before the change in tide is evident. We expect market to make marginal or relatively lower higher move and then change direction or go sideways. Have patience and wait for the low risk entry for better returns.
Market remains BULL trend but be cautious.... Comments are closed.
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