Dear Readers,
In my last post about S&P 500 Future I had put resistance at 917 and 929 as important. Today, when I looked at Daily and Weekly Charts of S&P 500 Future I got a topping signal for this Bear Market Rally and so I am posting this as a caution to long traders. If it falls now and goes below 870 odd, then we may see bears pouncing with full force.
Although Indian Markets look better in terms of the strength on upside, Nifty Future may not survive much further upside from here before giving a healthy correction. My advice is not to jump on and start buying. Instead, if it manages to get past 3730, which I think is going to be BIG resistance, with good volumes, only then one should start buying on retracement. If it retraces right from here, then keep a close eye on 3440, which should be buyers' stop loss and if breaches it would be better to go short on retracement.
Your presumption looks okay, but wait and watch. The overall global economy as per IMF is not as bright as it looks now. IMF says economy may slide further. Better to wait before resorting to fresh buying activities.
ReplyDelete@Gopal.G: You are right sir, but what I said is "buy if Nifty Future crosses 3730 with good volumes" That is for trading and not investing. Also, as it happened today (the next day after my post) Nifty Future made a high of 3729!!!
ReplyDeleteMy actual advice is CAUTION for buyers and I proved right, at least for today :)