So the journey down south begins?........ Let's see

The market opened at yesterday's close - went up and then started its journey downwards never to look up again. The euphoria of the Govt walking away with the deal seems to have died. In anycase to have a rally in the present conditions was itself a great achievement and by all indications we will hit a few lower stops. Now on the lower side we see if 4315 is a resistance and should hold. If broken then lower levels can be seen once again. If it holds then it may turn out to be good.

On the external indications - Europe closed 1.5% down with FTSE 1.51% down, DAX 1.46% down and CAC 1.38% down. Ford in US dragged the markets down by declaring that even the survival of the giant was questionable. On an average they were 2.0% down. DOW down 2.43%, Nasdaq down 1.97% and S&P 500 down 2.31%. Taking these cues in the correct sense Asia has opened 1.5% down and shows no signs of coming up till now.

On candles the indicators all look bullish but as said yesterday the breather had to come - and the indicators follow the markets except for a few that lead. Hey all that negative talk apart take heart - all the indicators are still bullish - MACD, RSI, TRIX.... It is only somewhere down the line we have become overbought on StochRSI and bearish in TRIN (courtesy Jaggu).

Red opening is certain and if no other factors play then we remain red. Best of luck for all.