Every body knows that there is PANIC all over the world. Sadly no Leader locally or globally can be looked towards instilling Hope and Confidence to the People of this country or the World. In that sense the sentiments are ruling every human being, and it is grappling all markets, especially the Global Financial Markets.
ASI is now treading the oversold areas. The RSI is at 22 points, at the time of writing. We have seen it falling to as much as 12 points twice during this year. Therefore a pullback can happen, as the norm in an oversold scenario.
The 1000 sma was also breached down today, which was the 2nd time it happened during the 2016. This is an area that acts as a strong level up or down for the ASI. Now that the index broke down from that, it will now become a strong resistant to break in a recovery.
The next support is around 6280 points, which is the 50% fib retracement. Hitting that can bring the RSI down to about 18 to 15 points.
Only relief for the bulls is that we are still on the corrective 2nd wave, and even if the ASI pull back to 5800 and bounce, it could be the 3rd wave, which has helped the bulls to thrive in the past. But the bears are very strong at this time.
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