| Indian MarketOne more week of volatility and we | | | | "blood bath" and indices may just roll south.US |
| ended the speculation in the "red". This was | | | | MarketDow finally made new highs. This time Nasdaq |
| expected, because 10K is always a huge number and | | | | did not really help much and it hardly gained any pace |
| bigger round number than any other. If you see the | | | | last week. There were a few good and few bad |
| performance of DOW Jones(USA), that too hovered | | | | news. One of the bad news being US Budget deficit |
| around the 10K mark for a little while before actually | | | | climbed to the highest levels ever and it does not |
| breaking it off and moving ahead. That doesn't | | | | seem to be taking any breaks. The average savings |
| necessarily imply that BSE will behave the same way. | | | | rate has been the lowest(in negative) ever in the |
| But a big road block is a road block for sure. With | | | | country, because everyone is just about spending |
| Budget session just around the corner, it is fair to | | | | and nobody really saving. This is definitely not good |
| assume that this kind of volatility will continue for | | | | for the longer term.Technically, We have a clear |
| some time.Technically, BSE dangerously close to | | | | breakout on our hands. But as you can see, the |
| forming lots of negatives. MACD negative divergence | | | | trendlines are pretty narrow and unless we break the |
| leads to either minor or major corrections. Similarly, | | | | upper one, it may serve as a resistance. As we |
| MACD crossover. Most importantly, as you can see | | | | mentioned in our analysis a couple of weeks back, |
| from the chart below, We are so close to the lower | | | | the lower trendline did in fact give good support and |
| support channel/trendline that we can hardly afford | | | | DOW has been climbing up ever since. MACD seems |
| to go down. Even if we do, we should recover | | | | to be supporting this cause and has clearly moved |
| pretty soon. Otherwise, it would be a nasty one. If | | | | above zero line. Next week will be crucial one as we |
| you look closely at the two trendlines, upper one | | | | did NOT have 2 weeks above 11K in the recent |
| being the resistance and the lower one being | | | | past.Complete NewsletterJohn Drass has been dealing |
| support, both of them are narrowing down as time is | | | | stocks for over 10 years and has over 7 years |
| passing by. This is extremely bearish for | | | | Experience in Technical analysis. John has contributed |
| medium-to-long term. Why? Because, the scope of | | | | articles and his know-how to various newspapers, |
| the index going down is very very limited and if it | | | | websites and organizations across the world. |
| does break the support line, then we could see a | | | | |