Announcements
Apologies to those who read this page and did not find something new until now. I seem to be short of Thursday, Friday and Monday. The good news is, you have not missed much as TODAY is what matters now.
Today's Market Action
The market fell by 2.53% today, plunging 73.37 points and finishing at 2830.75. This has not happened since March. The market seems to be going down and completing its head and shoulder cycle. Sentiments are weak considering that Put warrants are in the Top Gainers and Top Losers are the index stocks.
Insights and Opinion
My near term estimate of 2900 +/- 50 has been broken. The market seems to be heading for a rebound, considering it is ranging. RSI and stocastics confirm this. However, I will not be too sure about when the rebound will start and when it will complete. In March, the market spent about 2 weeks at a low and took another 2 weeks to climb to 3150 levels. It will not be surprising if this happens again. I would expect to see "smaller scale ranging" phenomenon at current levels of 2850 +/- 50 for the next few days. But. There could be a chance of a longer recovery completing the U-shaped, temporary recovery. The resistance can be set at about 3050 +/- 50. This can be a good chance to long index stocks for a few weeks.
Further, fundamentals are weak considering the coupling of markets in the region with the US where things have not been doing very well. A rebound of equity markets would probably be fueled by a correction in commodity prices as a lot of people are expecting. Market movements are, a self-fulfilling prophesy.
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