Today's close is 6825 points, we are heading to a major Psychological Support of 6800 points. A failure to hold there, will lead it down to test the year to date low of 6760 points.
As mentioned in my earlier post, a correction is a
10 to 15% drop from the 52 week high.
The 52 week high was 7670 points.
There were 2 prominent down trends in the whole of 2015. 1st was from the 12th of January 2015 to the 31st of March 2015. There were 51 market days in that period, and on 18 days the market was up, whilst on 33 market days it was down. 910 points dropped during this period, which works out to an 11.86% decline.
The next decline was from the 19th of August 2015 to date. There had been 79 market days, as such it is the longest decline thus far. During this period the market went up during 29 market days, whilst it was down on 50 market days. Ironically the drop from a high of 7531 to the present 6825, is 706 points, and 9.4% only. Which means even though the period is long the % of decline is lower than the earlier decline. As the length of these declines are relatively long, the psychological feeling has become painful, and anxious.
However the performance of the market indicates a correction, although it is a painful one.
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