Market continues to race towards bottom of the bullish channel yet remaining bullish. What can we expect next?
Below chart shows us that, market is barely above MA(100) and hence remain cautious. At the same time, McClellan Index continues drift downwards and remains below EMA(59) sending signals to remain cautious.
Bullish channel is clearly visible in below chart, although at this point market is below MA(50) it is still in the bullish channel and hence benefit of doubt goes to BULLs.
Weekly chart gives us a broader perspective:
- Bullish channel is intact
- RSI still above 50 mark
- PPO is hanging onto zero line
Benefit of doubt goes to BULLs as long as market remains in the channel.
What does it mean for our Investments?
Pullback underway and remain cautious...
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 possibly at bottom of the channel.
- 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.
Pullback underway and remain cautious...