Sunday, December 13, 2009

Are you looking for confirming evidences!

Sensex since 2nd of December has not done much and is not trending in any direction
The global market rally / fall did not result in any major movement in the index
Human brains are conditioned to look at evidences that help us satisfy our positions and confirms we are placed in the right direction but please beware a breakout or breakdown is what will be obtained from only from price confirmation
Happened: A strong bounce back in US dollar. We have been mentioning since last few weeks of strong technical bounce back in US dollar and happened EURUSD fall from ~1.51 to 1.46 in just a week's time
This should result in global sell off across different assets but when will it happen only price confirmation will tell!
On balance volume indicator is drifting downwards indicating volumes on downside is little more than that on up side
But we still wait for "Price Confirmation" in downward direction. First confirmation on downside will be obtained below 16900 and later below 16500
So wait for prices to prove its direction and STOP looking at other evidences that provides an inner emotional satisfaction!

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