- Top chart - Nifty is near HIGHs while MA(100) remains below MA(200). If any massive rally is going to start here then MA(100) has to move above MA(200) until then this market is going NO where.
- Bottom chart - McClellan Index has changed the direction and is above EMA(59) & MA(100) suggesting more stocks are advancing while less stocks are declining for now.
What does it mean for your Investments?
- Mutual Funds - If invested in equity markets then stay invested be careful and watch out especially if market cannot hold current level for long. If invested in debt funds then just make sure to avoid any losses beyond 8-10%. It would be wise to stay in cash or liquid funds or CDs for now until we get a clear direction.
- Stocks - Only invest in strong patterns and DO NOT forget to have STOP LIMIT in place.
Market is near HIGHs and in resistance zone, be cautious for reversal...