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Monday, July 27, 2015
Its time to eat humble pie?! not clear yet. But looks like a sharper pullback within the bullish trend than earlier imagined.
BSE Sensex: With the derivatives settlement approaching in a couple of days, there is a strong chance that this fall might be bought into and overall the markets turn sideways. Supports exist at 27600 odd levels.
Shanghai: After the crash down to 3500 levels last month(where there is ample support) the index did bounce back and is now retesting supports to confirm that the crash is indeed over. Situation is still unfolding though hence a little bit of wait and watch to confirm the trend is in order.
Dax: A case of a stronger than anticipated pullback within the bullish uptrend. Has a couple of decent gap-up support levels approaching at 11000-11150 levels which could prove to be the trend decider.
Dow Jones: Is back down to its 200-DMA with 4-5 days of straight decline. Could be oversold on the short-time frame charts. Cluster of tops around 18100-18300 range needs to expand though for some comfort on the medium term time frame.
Will keep updating as the situation unfolds. Traders would do well to absorb their stop losses and look for opportunities to re-enter.