- Nifty very close to crossing MA(100) line, we consider it as our SELL signal, although NOT yet there
- McClellan Index has already crossed EMA(59) and MA(100) suggesting caution
We expect Nifty to bounce from current level and after slow rise challenge 2011 highs. Once that happens then Nifty may experience a topping pattern with lot of volatility along with zig-zag action eventually undergo a bigger correction, NOT necessarily trend change. Only time will unfold the real story...
What does it mean for our Investments?
- Mutual Funds - Stay invested but be cautious. Even if we get SELL signal no need to rush, market will make a bounce attempt and provide us with an opportunity to re-evaluate situation at that time, have patience.
- Stocks - Invest in right patterns and DO NOT forget to have STOP LIMIT in place. Since market is in pullback mode, this might be best opportunity to create a watch list of potential candidates.
Market in pullback mode yet bullish BUT be cautious and alert...