By Investor’s Yak
CAUTION: Unless you are a risk taker, it might be prudent to wait things out.
Most industry sector charts are holding on to their 50 day moving average (DMA), but show signs of a potential pull back. Financials, Biotechnology, and Transportation indicators are extended beyond their Action Zone on both their near term daily charts and longer term weekly charts. While Utilities appear to be setting up for a buy, their 50 DMA is crossing below the 200 DMA; a negative or bearish sign.
On a positive note, Home Builders and Building Material industry charts are at their 50 DMA and in the Action Zone. And the major indexes (i.e. NASDAQ, S&P500, and Dow Jones Industrial Average), are setting up for future Action Zone possibilities. However, it might be sensible to wait on confirmation before jumping in.
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