Turbulence ahead… Update for 14 May

The market stands awaiting the results of the elections. With each news – the hope and fear alternates and that is how the market is likely to react till the time the certainty of the Party that has to form govt is known. The news as of now shows no clarity on the issue. and the exit polls have the dubious reputation of being wrong by a margin at times. The global markets continue bleeding meanwhile as the news from the US retail sales and the foreclosures is not good and the hopes of an early recovery from this recession are dashed.

On the global front the Nikkei ended 41 points in green that is 0.45% up, Hang Seng was half a percent down and Strait times was 7 points or 0.33% in green. In Europe FTSE was a drop of 2.13%, Dax down 2.61% and CAC down 2.42%. US opened red and then closed at one of the worst levels for the day Dow down 2.18%, Nasdaq down 3.01% and S&P down 2.69%. No good news on this front either.

Coming on to the charts – I am sorry to say but the bad news continues. The candles had left the upper end of the Bollinger Bands a few days back and seems in no hurry to hug the upper band now.The volumes seem to be shade higher than yesterday. ADX continues to be  Bullish with negative divergence. MACD is bearish and the RSI is bullish with negative divergence. Slow Stochastic is bearish. TRIX is looking down. With all these indications topsy turvy the volatility is likely to continue.

The Pivot data is as given below…

R3 3808 against 3848
R2 3750
R1 3692
Pivot 3651 against 3635
S1 3593
S2 3552
S3 3494 against 3422
Projected High Range 3672 to 3721
Projected Low Range 3696 to 3647

I guess that – this should be all – the markets are likely to to take more cues from the election results than anything else. So I will pen off now.