⦿ Last week's indices under Rally attempt (Auto, FMCG, MNC) went into confirmed downtrend
⦿ Last week's indices under Uptrend under pressure (PSE, Power, Energy) also went into confirmed downtrend
Momentum
⦿ Almost all indices (including Nifty, CNX500, Midcap & Smallcap) have negative & worsening momentum.
⦿ Auto is the only index with some positive momentum, but that is also now worsening, & on the verge of becoming negative
Swing
⦿ Nifty is now in confirmed downswing
⦿ Smallcap is also now in confirmed downswing
⦿ Swing Confidence now is 00. Long-only swing traders should be in all cash. No fresh trades.
Breadth
⦿ Market breadth worsening further from last week's low levels.
⦿ Higher timeframes are deeply bearish, while lower timeframes are heavily oversold.
⦿ A technical bounce from these levels is quite probable.
Bias
On a modified Stockbee market monitor, the short-term indicator of 13% up in 34 days stays negative for past 6 weeks, & the long-term metric of stocks 25% plus quarter is now negative for past 4 weeks. The intermediate 25% plus in a month is back to negative.
Overall, the market is bearish for past 4 weeks, as the number of stocks up 25% plus in a quarter stays lesser than that down 25% plus in a quarter. The ratio between the two is the primary breadth ratio, which is now 0.15.
That’s all for this week. If you'd like to know when I publish something new, just subscribe to my newsletter and you'll get the latest sent direct to you.
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