Indices are showing early signs of fatigue but one needs to be careful selling into the weakness. Because if 2120 holds in S&P 500
( USA Index ) then it confirms the breakout and short term direction might be higher. Chances of quick meltdown are always there but when world is awash in easy money and still more to come, it has greater probability of sideways action. Earlier we mentioned about NIFTY's stickiness near 8500 level with NIFTY
trade scenarios in our monthly market outlook. (http://bombaybulls.com/monthly-market-update-812016/
) Break of 8500 support may not come easy and that is the reason we are reluctant chasing it lower. Rather on better risk reward term, the trade would be to buy the quick break for sudden snap back to 8500 / 8600. Still there are lots of things in flux and hard to gauge the pulse because indices are not going in the same direction for continuous two days with confidence.
Besides today's ISM service data and Friday's NFP can push the equation in any direction very rapidly. So let's see how today's price action behaves. We are closely watching 8650 - 8550 boundaries in NIFTY