A nice hesitation on Friday as the market bumped up against the upper Bollinger Band as I expected and there is likely more correction to come as the market is overbought still.
The short term technical signals are getting very mixed as we have had a long period of sideways movement with only a very gentle rise over a period of time.
You can see the jump in volume which has pushed this latest upturn and we need to watch carefully as a fall in volume will undoubtedly lead to fall in the index.
The MACD on the daily chart is pretty useless at the moment and the Slow Stochastic has re-crossed between the overbought and oversold line.
The weekly chart is still bearish but is showing signs of turning so keep a close eye for this trend to establish itself better when the weekly chart turns.
Check out the speed resistance lines on the second chart which have been excellent support indicators since we drew them on in the middle of last year. The third line now seems to be acting as overhead resistance just as it did in June this year. Good to watch this going forward.
The correlation with Wall Street is coming down as the India market has got a life of its own just recently.
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