Looking at S&P500, the past week has been good but it was not good enough to make the market safe to resume buying. The week started with a bad Monday but by the end of the week, the index closed on the high side of the week. Friday bar did not look good. The bar touched both 21-day and 50-day moving averages, then closed low. If the price declines from here next week, it is bearish as it implies that the bulls have been won over by the bears after meeting resistance at the 21-day and 50-day moving average.
I want to see the price move up convincingly overcoming the 21-day and 50-day moving averages resistance as a bullish sign.
Hang Seng index performed similarly as S&P500. The week started weak but finished strong by end of the week, although Friday's price action does not look good. The week was good but not good enough to give a clear signal for buying to resume.
Market action to take:
- Continue to stay on the sideline until a bullish sign has been confirmed.
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