In my opinion the only support level that matters right now is the low of the bullish piercing candle that was formed on February 24th. Similar to a bullish engulphing candle it signifies a change in trend. The piercing candle is formed on a strong rally day with heavy volume after a sell off. Ideally the piercing candle should penetrate at least 50% of the previous candles body. In this instance we see price rejection at the 4500 level on February 9th which lead to a sell off through February 23rd. On February 24th buyers stepped in on heavy volume and put in the low for the year thus far. Afterwards there was a brief rally followed by a selloff only to see the rally resume. Unfortunately for the bulls the rally lost steam and price rejection was again put in at the 4600 level. It's not uncommon to see the low of the piercing candle tested before the low is confirmed and a sustained rally can take place. If the low of the piercing candle doesn't offer support then the minimum downside target would be in the 3600 range putting the index firmly into bear market territory.
Good Luck To All!
Good Luck To All!
