Market was a field day for the Bears, as it was hammered down more than 60 points. Day by day we see more bears joining the party. It is very painful to see how the values are falling. Given the rampage of information streaming through the print and electronic media, and the VIP's in the authoritative places, it is no surprise that the Market is falling. At this pace I won't be surprised to see the index is testing the 700 day moving average at 6596.40, or 6600 which is a psychological level. Failure there can obviously expose 6500 points, which may not be impossible at this rate. Fundamentally we do not see any light just yet. But we are in Sri Lanka, a country that has no war, no turmoil, no chaos. If we can't make this Country flourish, then it will not be the problem of the Land, but the Man. Fear has kept all away due to the lack of beneficial information for the bulls, till then the risk of negativity will take it's toll on the overall market. Just as much as the Price and volume makes the bears to hold the roost, so will the bulls. But presently it is the Bears on play.
However Markets Go through Bull markets, Bear markets and Corrections. Any time the index trends up and falls 10% or more upto 2 months it is called a Correction before the market move back to the up trend channel. Same will be the case when the market is trending down and goes up 10% more within 2 months. My analysis says that the market is going through a correction. This is the 2nd time it has happened during the last 52 weeks. The 1st time the market fell 10% or more was on the 27th March 2015, but in 2 market days the trend reversed and moved up. The 2nd time it went down 10% or more was on the 1st of December 2015, and the index is moved down for the 25th market day, at the end of today's trading as well. The next thing is that the market has fallen 261.79 continually for the last 6 days. The bulls may have a sigh any time soon, but till fundamentals are not in favour the turmoil will be frustrating.
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