As mentioned in earlier posts, US markets may slide further more. This can give further pains to other global markets and Indian market will not be spared off. Though Indian markets may show positive divergence, it will be difficult to rally until the sell off in US stops. Though I expect for US markets to get into oversold territory soon and stage some bear market technical pull backs.

More down side in US markets?

If for now Dow Jones does not trade above 9000 convincingly or RSI does not get into oversold position, it will be very painful situation for the Bulls and Bears will tighten their grip and keep on hammering at every little rise. Due to this, even if Asian markets get into oversold position will not see strong enough pull backs and will continue to trade on side ways.

US stock market out look.

Dowjones, Nasdaq, S&P 500 managed to move up 20day SMA but were not able to sustain above it. Technicals indicates that all of them may retest the lows and may even make new lows in coming days. Which can give more pains to indian market sentiments. For long term positional investor, it will be a wait for some more time. Should not be carried away with sharp pull back bear market rallies. Only try to accumulate near the lows made in Octobers.

I wish you a happy investing.

STOCK MARKET IS SMARTER THAN TRADERS

Expect gap up opening on Monday 10th Nov 08.

Comparing 52wk Highs and Lows of NIFTY

INDICATORS	08JAN08 H:6357.1	27OCT08 L:2252.75
Accumulation/Distribution	300.80	-50.90
Aroon Oscillator (14)	85.71	-100.00
Aroon Up Down	100.00 14.29	0.00 100.00
Av.Directional Index +DI(14) -DI(14) ADX(14)	30.60 8.972 38.19	5.489 51.51 62.85
Avg True Range True range ATR(14)	135.50 115.40	332.60 239.40
Bollinger Width (20,2)	679.30	1651
Chaikin Money Flow (21)	0.1633	-0.2071
Chaikin Oscillator	23.38	-9.109
Chaikin Volatility (10,10)	-28.08	13.84
Close Location Value	-0.0221	0.6325
CCI (20)	143.60	-221.80
Detrended Price Oscillator(20)	234.90	-860.50
Donchian Width (20)	680.40	1858.00
Ease of Movement EMV EMV EMA (9)	254.50 112.30	-10754 -3521
Fast Stochastic %K(5) %D(3)	76.62 85.70	27.09 13.79
MACD12,26,9 MACD(26,12) EXP(9) Divergence	121.40 99..77 21.62	-351.70 -280.20 -71.41
Mass Index	23.69	26.76
Momentum(12)	536.70	-989.50
Money Flow Index 14	80.95	23.09
Negative Vol. Index 20 NVI NVI SMA (20)	115.50 112.30	55.53 62.01
On Balance Volume	236.70	-178.20
Performance	40.92	-59.86
%PriceOscillator12,26,9PPO(26,12) EMA (9) Divergence	1.975 1.644 0.3306	-11.41 -8.488 -2.921
%Volume Osc.2,26,9 PVO(26,12) EMA (9) Divergence	5.506 2.095 3.411	-5.203 -3.333 -1.871
Pos Volume Index20 PVI PVI SMA (20)	122.0 120.8	72.29 86.54
Price Volume Trend	5.952	-10.71
Rate of Change (10)	5.058	-27.69
RSI (14)	69.36	20.925
Slow Stochastic %K(5) %D(3)	85.7 85.25	13.79 12.73
StochRSI (14)	100	14.50
TRIX (12)	1.003	0.9869
Ultimate Oscillator (7,14,28)	66.20	37.22
William’s%R	-10.18	-81.66