In the last week, stock market didn’t go through the anticipated correction. Last week, Mercury & Mars changed house while Jupiter has already combusted. On 17th, Sun shall enter debilitated sign of Libra. This shall be negative for the market. Anytime, market may enter into bearish mode. It is advised to trade with caution. If this bearishness happens, the negative trend would continue for some time.
Technically, market is in a overbought position. This kind of rally without healthy correction has been indicator of considerable bear trend afterwards. This is happening for the third time in history; prior to this- something similar happened in the year 2000, 2008. You’re being advised to be cautious because you never know when advent of a sudden bad news could breach the key support levels. However, you should take care of the technical levels as well.
S&P500 December contract made a high of 2555 in the previous week. If 2559-2560 is crossed then, it is possible for SPX to hit 2571-2581. If 2535 is breached then it should be a new sell signal. Below 2525, sharp selling is expected. The nearest support in that case would be 2425. The planetary conditions seem to be more aggressive against the market. It is advised to WAIT and WATCH. At the moment, you may remain long in S&P500 with S/L 2535 and enter into short position if it breaches 2535. Banking and financial stocks may witness considerable fall if the anticipated correction happens.
Indian stock market: We were expecting a correction as per astrology after 12th October; which didn’t happen. This week continues to be dangerous. If the correction comes then it would continue for some more time ahead. Nifty has major support at 10100 and resistance at 10290 while Bank Nifty has major support at 24500 and resistance at 25000. The market has been continuously moving upward without correction. Technically, market is in a overbought state. The P/E of Nifty has almost crossed 26; for the third time in history (previously – 2000, 2008). It is high time to take care.
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