ASI finished the week higher than the high of last friday the 8th instant , closing at 6422 points. That was an increase of 56 points over that day's close. The index had edged up 168 points since the 4th of this month, which means that it had gone up 21 points on average per day. We have another 9 market days to go during the month, and if this momentum persist then it will add 189 points more to end with an increase of 357 points. This momentum as against the earlier up move between 10th March 2016 and 16th May 2016 is a little bit too fast. That trend brought in 846 points at an average increase of 19.67 points whilst now it is averaging 21 points. In my earlier posts too I mentioned that the speed when the index was heading North is too fast as against the pace it fell in this present rally started on the 10th of March 2016. If this speed continue we will see the Market ending the Month of July at 6611 points. Another unique feature in this trend is that even a novice of elliot wave counting (like me) could be confident on the formation. As such my personal opinion is that we have resumed the 3rd wave. The 2nd corrective wave nicely retraced a little more than 50% of the 1st wave which was something RARE in the recent past. Then as I mentioned in my last week's post the index crossed above the 1000 sma as well. Another moving average line I'm interested in seen breaking is the 200 sma on the weekly chart. This could be broken perhaps within the next week as it is at 6473 points. Another 51 points more.
Weekly RSI in 2016 came down below 20 points for the 1st time since 2008. This shows how low the sentiment is amongst the market players. However this is great news for the ones who cherish riding the waves.
Many are still wondering of a down fall. That is natural at this stage of the trend, pessimism is so very high. But if someone noticed how the market behaved last week, it goes on to show that the market has many opportunities.
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