ASI - Trend Reversed . Short term Sell - Update 2

In my post under the above caption I suggested that the trend in the ASI had reversed. The index was at a lower high of 6412 points. However it was a short lived drop, as the market continued it's aggression to move above last years' high of 6719 to a new high of 6747. Interestingly the 9 day moving average had been a nice support during this rally since 31st March 2017, but has now turned into a resistance, which is an important line for any short term trader. Furthermore the RSI which was in the over bought region from 5th of April to the 25th of May has now dropped down to the mid range between 50 and 60 points, with a downward slope. The MACD, another important indicator is also extending in the negative territory. We now can see that the index is trying to hold onto a support @ 6650, and break out from the said new high of 6747. A failure to hold onto the 6650 support can make it hold @ 6600 points. We must see what will happen then to all the aforesaid indicators, and the period that will take to see the drop, TO decide on the way forward. Presently it is the 9 sma that am looking at, which is acting like the pivot.

However it must be noted here that we as technicians be it very basic like ME or Advanced like some who are reading this post need to understand one thing. And that is that the market is NOT exactly behaving as if we are the choreographers. Just like your chart interpretation OR prediction is not the same as mine as some one said "if you put 5 Elliot Wave techs in a room, you may get 5 different starting and stopping points of each leg"  What I believe is that the real life changes direct the market trend. Which in turn will reflect in the charts. As such we can see many investors, mopping up stocks of great companies of their choice due to many positive reasons which are fundamental in nature than technical. Hence fundamental and Technical indicators are vital and you who are reading this post must have the basic or advanced knowledge of them. Please don't hesitate to call me on 0773 219 506 or mail me on saliya@capitaltrust.lk.