The Start of 2016 was not the best since 2006. In fact the market began to usher in the new year with a positive note when it moved up 18 to 20 points on the early hours of 4th, the 1st day of trading for the year. But it wasn't for long. Ultimately we saw 197 points drop for the 1st five days of the week.
Market after failing to stay above the 100 day moving average in the early 2015, kept on tumbling down the 200, 300, 400 day moving averages. During the latter part of 2015 the market tried to take support at 500 day moving average , giving a sigh of relief for the bulls. But the expectations were all shattered as the index plummeted down 500 sma within minutes of trading on the 4th. Today's close at 6726.28 means that the trend may drag the market down below 6700 points, too soon. This incidentally will be another critical level of support as the 600 day moving average sits at this level. If we fail to take support at that then the 700 day moving average is at 6600, whilst the 800 day moving average is at 6480 points. If the bears want to hammer it down further then the 1000 day moving average is around 6257 points. The last time the index has fallen below 1000 day moving average was in 2008 - 2009 period.
However I still want to maintain that the Market is on a correction, and hope we will not see it below 6500 points. A failure to hold that, means we may be moving to a BEAR MARKET territory. I also believe that the market is at a pivotal period, where once the bears are gone the bulls will certainly take the market to a new level.
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