SENSEX :
On Monday SENSEX made a hammer from first crucial support at 18125 but we mentioned that to confirm any kind of bottom SENSEX need to have a big BULL candle .
Tuesday was an up day but was not ENOUGH to confirm any bottom and yesterdays big black candle suggests that the downward move may soon gather momentum, even price STRUCTURE wise if sensex closes below 18044 which is a GAP SUPPORT the inverted H&S will get punctured.
This will have extreme bearish implications and even January 2011 bottom around 17200 will be in danger.
NIFTY : AS suggested in last two days technical view for BULLISH confirmation of a bottom at 5432 NIFTY should have given a close above 5521 and 5542 which did not happened.
Now if NIFTY closes below 5432 it will have last support at 5387 and a close below 5387 may well put any bullish hopes to an end.
A close below 5387 will disturb the inverted H&S structure also and when any such positive looking PRICE STRUCTURE fails to complete it can produce larger BEARISH TRENDS.
Below 5387 our first target will be 5177 which is January 2011 lows.
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