Market Review And Update 07February 2021
In our previous report, we stated:
“While I fully expect a reflexive rally next week, that will likely be an opportunity to reduce risk rather than chasing markets. Such will be the case until we see money flows start to turn positive again, suggesting some underlying buying pressure."
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Such was indeed the case as the markets successfully tested and held the 50-dma
(red dashed line.) Despite the fact money flows remained weak, as shown in the chart below, the market did manage to regain previous highs.