Finally sensex breaches all support levels including 61.8% and 78.6% retracement levels of the last leg of rally and it is very important that it took 16 days to reach 20664 from around 19000 while cracking back to 19224 sensex took only five working days showing the power of bears.
All these characters of completely ignoring immediate supports and taking far lesser time in downside move proves our point of a major turning point in our market which we have been trying to prove using various technical tools during last two months.
The 200 day ema is placed at 18809 and 2.618% retracement level of one last leg of rise is at 18745 so these two levels are one target in short term but looking at extreme ovesod condition of stochastics we may have a formaility kind of halt or sideways movement for 1-2 days.
Nifty :
For nifty too the major trend decider level was 5795 although we had warned of a major impending crash way before nifty actually crashed.
As shown on sensex chart the +di and –di has given a sharp cross signal suggesting huge downside momentum and the adx value reaching 30 is another evidence of powerfull bearish working actively in nifty.
As one can see the nifty chart we had posted one comment on nifty chart that their will be severe selling pressure below 5833 and that is exactly what we witnessed yesterday although the 200 day ema value
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