ABC correction is on and Wave-3 trendline broken(5460) down yesterday after sustaining below 200 day EMA(5646). Yesterday candle was Engulfing Bearish and it is also bearish move indication. All the technical indicators are signalling bearish market begining but following mild signals are telling for wait and watch a little before forming bearish market view:-
1-Although Indian markets closed more than 1% down yesterday but intraday charts of yesterday are not suggesting selling patterns therefore yesterday trading range(5400-5450) should be watched for bearish market confirmation.
2- Indicators are oversold and some are showing divergence also therefore bounce back posibility can not be ruled out.
Conclusion:-
All the confirmations of bearish markets begining but still Bullish markets expected because no Distribution pattern and only correction patterns. Still expecting rally and breaking out of 5400-5450 will be watched first for next immediate move confirmation.