Long only investors who hoped that the retracement would be brief, and that the market would quickly resume its uptrend, would have been disappointed by the down-turn yesterday and today, breaking support at 4950.
On technical groups, the expectation is that the turn-around will be between 4650 and 4850, a range which now appears more likely.
Since it is not possible to pick market lows, it still seems to be sensible advice to look for bargain prices in quality companies.
A major potential blot on the investment horizon is the aggressive stance of North Korea raising the spectre of conflict on the Korean Peninsula.
Weekly Market Update from “Trading for Blondes”
- U.S. Isn’t ‘Getting Too Jumpy’ on Kim Threats, Rice Says (bloomberg.com)
- View from space: North Korea and South Korea (earthsky.org)
- North Korea: US Deploys Spy Plane To Japan (news.sky.com)
- North Korea asks Russia to consider evacuating embassy (indrus.in)
- Gillard to call for greater regional co-operation on North Korea (abc.net.au)
- North Korea issues foreign embassy warning (abc.net.au)
- Navy destroyer moved closer to Korean peninsula (king5.com)
- Military And Intelligence News Briefs — April 6, 2013 (warnewsupdates.blogspot.com)
Categories: Chart Analyses, Technical Analysis
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