Market continues to churn higher with a slow grind. Sometimes this might be frustrating and market has a tendency to suck maximum folks near HIGH. What shall we do, especially if we missed the rally?
Divergence between Nifty moving higher and McClellan Index moving lower is gaining traction. In other words, as market continues to move higher, less number of stocks are participating in this rally which is NOT a good sign. Market cannot keep up higher levels if more stocks are declining on daily basis.
Nothing changed in below chart.
Nothing changed in below chart as well.
Looking at daily and weekly Nifty chart, everything looks good, however McClellan Index is telling us a different story. Also take a look at MACD and RSI on Nifty weekly chart (not shown in above chart), which is suggesting a possible divergence over last couple of months. In short, DO NOT chase the market at the TOP, instead wait for low risk entry and have patience.
Just like all of you, hard working and trying to make a better living.