Market continues to display expected behavior, how so? After hitting TOP end of the bullish channel, market now appears to be in its journey towards bottom end of the channel. So how does that affect us!!!
Nothing changed in below chart as market continues to remain above MA(100) and McClellan Index suggests caution.
Market trying to hold onto MA(50), but will it find the support!!! Lower end of the channel is NOT far away and it will not be surprise if market decides to visit that area.
Weekly chart shows that bullish channel is intact for now.
Charts does give benefit of doubt to BULLs, however we need to pay attention and remain cautious. If market does visit lower end of the channel then it has to hold it else the bullish channel will be broken and all bets are off the table. The next support will be at MA(200) area and it might take a while for market to recover.
What does it mean for our Investments?
Market in pullback though remains in bullish channel...
What does it mean for our Investments?
- Mutual Funds - If already invested in equities then stay put and enjoy the bullish gains. If in cash/FDs/liquid funds then wait for next low risk opportunity.
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Market in pullback though remains in bullish channel...