
“While lower time frames are all bearish, weeklies haven’t given conclusive bearish signals. So, if one is holding the shorts, or initiating a new one, ensure to get out of them quickly unless there is a confirmation to continue the bearish bets on the weekly charts.”

“While we have been focused at what’s happening in the U.S., it makes sense at times to keep an eye on what are global markets upto and if there’s any sign of stress or is there a relief in sight.”

“If last week things were broken, now it is all the more shaken. Apart from the 20 EMA of the weekly and supports in the form of lower end if wedges and channels – which are bearish if and when breaks down, I find no reason to be heavily bullish. “

“Last couple weeks have been good for the bears and good for us as well, as we expected the weakness and it ensued. What happens next and how to place our bets is something we’ll see in the post today.”

“One key principle of technical analysis is that higher the time frame of the analysis, more accurate the results are. For example, if there is one bullish pattern on an hourly chart and there is another bearish pattern on the daily or weekly chart, I would rather trust the daily and weekly chart as against…

Even as the trend may not have turned down for the key indexes, key stocks that led us all the way up, aren’t showing any healthy picture and their charts are all broken down.

For a change this week, all I’m doing is focusing on some small and mid-cap names that have some scope either on upside or downside.

“There are quite a few things that I look out for to decipher if the bull or bear market is still alive, such as to see how broader market is performing, if the pullback from the existing trend is healthy or if it is turning volatile?”

“Ever since the market bottomed out (if I can steal that word), there has been a lot of argument in the market about the macro-economic health and why markets can’t rally in this environment. Yet here we are! Macros and markets negatively diverged!”

Any pattern, whether channel or a wedge, it shows signs of petering out when it stops forming higher highs and stops touching the upper end of the channel/wedge. Thats first sign.