Eureka -- its a white candle

As was expected yesterday -- the markets opened gap down and then did what was not really expected - it recovered. That means that the 4400 resistance is standing firm even though after being violated once. Were the last two days of white candles expected? Were they an abberation? I don't know!

As I write this US was marginally up (little less than half a percent) and Asia opened flat - in green and now drifted in red. That gives some que about the opening and it may be red if asia does not again drift in green.

There is nothing particularly good expected about the markets except that Jaggu says that the TRIN is neutral to bullish. There is a fear psychosis related to Friday the 13th couple with that a weekend comming - and the general talk is about wild swings in the market -- in turn means make money and once you are in positive -- take an early day off and enjoy the weekend. The general consensus is to avoid overnight carryovers. The jitter in the markets is so much that even with yesterdays positive on nifty may see profit taking. That apart we do have capacity to inch up -- upto 4650 - 4750 levels in next few days. We are likely to tread this path if we are above 4550 on the closing basis.

Coming to the candles: Most of the indications remain bearish expect the fact that StochRSI is moving confidently towards the 50 mark and crossover will make it bullish. RSI too is looking up but still way to go till 50 point marker. On Slow stochastics -- the fast line has firmly crossed over the slow line and that is good. The MACD divergence too has reduced showing weakening trend (weakening bearish trend) but it is way to early to predict start of bullish upmove.

All in all the Asian markets may make us open in red and then inch up towards recovery if Europe and others give us some leeway.