On May 5th, I had advised my viewers that any break of 8145 levels will lead to the market tumbling down. I have to assure that them the bear
market has continued once again. The reason for the bear
market is not because of weak economic data(ignore some ndtv 'expert' who tells you that). Our economy is not getting weaker. The bearishness is because of human psychology taking effect on the markets. This is a very normal thing for the markets to do after a long time of rallying. What concerns me is the upcoming US elections and its impact on the Indian markets since S&P500
are very closely related.
There are two major support lines to look at:
1) 8018 level - This is a minor resistance. Wave C becomes equal to wave A. If the market decides to bounce here, we may go up to 8623 levels immediately.
2) 8596 level - This is a MAJOR support level
. 8600 is both a psychological and fibonacci support level
. So there are very good chances that we may see a bull
market here. Till we get to those levels, keep a bearish
perspective about the markets.