Sensex Short Term Movement

Outlook : Neutral

MACD: Moving up from the lows set in October. Still not in the positive territory. Till the time it does so it cannot be said that the movement has turned positive

Stochastics: Till such time the red line is above the black line it indicates short term strength. 

With the market not doing anything for some days perhaps its not such a bad thing after all. We all get to hear about periods of consolidation and markets not falling, well for some days we have experienced something like that. Interesting thing to note what exactly is happening in the Accumulation / Distribution patterns. What this means is that if the accumulation chart patterns are showing accumulation, then it means that smart money is accumulating stocks at these low levels. However this not true for all the stocks as some stocks still are showing distribution. 

It comes as a relief, that the markets did not collapse on Friday and the series went off peacefully. I had taken a punt in my post on 8th Nov, that the series might be able to hold its own for this series and thankfully it did. It did not sell off, the way it has been doing...so does it guarantee that we are out of the woods? Well not really...we still are in the negative territory,MACD is still showing negative diversion, we are still trading at below the Moving averages curve so it is still it is not happy days for the markets...

Now with the new series starting, it would be interesting to see whether the individual stocks have started to show accumulation patters, that would indicate that smart money has started to accumulate stocks...If not then we might have somewhat lower to go...But for that to happen first the lower bottoms have to be broken and that is a glimmer of hope for all of us...On the positive side if the accumulation has started to happen, then we might see another positive series, that would mean that shares would start to see positive gains and some traction would return to the markets. It is difficult to predict the movement currently for a long period, as we are in a no mans land right now...

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