A Big Weekly Downside. Markets Down almost 25% from the Top of 9119. Check out the Charts as of now.
A Capitulation move was ripe to come as expected in a Jan. Post to test the bottom of the Channel. The cut has been deep and whipsawed the Lower T/L of Channel.
Since Trend is Down, keeping below 7230 close we may retest the Low / further below.
We may get an upside bounce on a close above 7000 to test the Resistance zone now at 7150-7230.
Close above 7270 may signal a Bottom in place as of now.
Positionally the Low 6869 and apprx 100 points below is now a good Support zone.
Trade with caution. Have hedged positions on any bias whether Long or Short.
Fantastic analysis as always. Seems that this double zigzag will end with a fifth within the fifth so a lower low to complete the fifth of fifth or may be a failed fifth of fifth should end this downtrend from 9119.
But caldaro's analysis is very bearish on US markets and he expects a 50% correction there before resuming a very bullish 3rd cycle wave.
Thanks Manoj ji for the inputs.
Looking for an upmove(ivth) and then a downmove(vth) may be till channel bottom (truncated) or test of low/ below.
Rest as the Market unfolds.
Support at 7150-60
Resistance at 7290-7320
Above 7230 Short term Bias would be Up.
Series dynamics indicates down move only below 7145 as of now. If breaches it for hrly close then may go down to 7080-7020.
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