Nifty has sold off pretty sharply since the start of 2016 and Global markets are being blamed for this. But Here's the surprise: S&P 500 bullish structure continues to be intact and it has not broken any important support levels even after all this volatility.
Here's how S&P500 weekly Chart looks like
S&P500 has consistently held 1810 since March 2014 and now even 200 week moving average catching up with the horizontal support line.
Here's the worry
If this is a Bear market and S&P500 breaks down below 1810 - then what will happen to Indian market. So, all one can hope for at this point of time - the current Global correction will get arrested at 1810 on S&P500 and that would mean Nifty correction getting over at Nifty 200 week ma which as of today stands at 6900.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers