Mkts bounce off 30-SMA after early selloff but damage is done. While the mkt remains above the last short term green support, today’s action effectively broke the long term uptrend channel, established since March 09, after more than 50% adjustment from 1200-1270+. Instead. bears will have the upper hand, with a new downtrend line.
Downward risk is high if fkli stays under the dwtrend line but I do not forsee mkt turning long term bearish, below 1200, but instead visualising a prolong consoldation phase in Nov before a resumption of an uptrend move in Dec. To be sure, its a sell mkt. technically.
No more sell call this week. But if mkt breaks green support next week, will initiate a short term sell targeting towards 1200. Unlikely to see strong buying signal in the coming days, maybe 1 or 2 weeks - until you see 7SMA bending upwards.
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