a base formation or a distribution phase again ?

a strong up move took place from around 2400 nifty levels,but nifty could not cross 3223 on closing basis,but the following fall was having a very lesser speed and venom in it,even with bad news still flowing from us and even other world economies,nifty didnot break october lows,and took support at 78.6% of the rise,and as i mentioned with a lesser venom,this probably could be a very good base formation process ON ...naturally our markets are not going to see a steep bounce back suddenly, but if october lows are not broken till jan -09,,,i think we may well have seen the bottom.alternatively now onwards if markets cant hold october lows ,and if even 2200 is broken ,we will see nifty tobe touching 1587......personally i think this will not happen,and slowly but steadily india markets will start deviating from us and europe economies...as there is a very very real differnce between the PHONY ECONOMY of the usa and the real economy of india..after all the usa investments in india has seen a significant downside, so once this withdrawal process stops, the dollar will start cracking down and that will be the real turning point for india markets