The trading over the last 2 weeks is a classic example of technical analysis in action. Old and cliche as it is, history does seem to repeat yet again. As with the blue chips, the index rallied on dwindling volume over early march, reversing on a trendline bounce off. The dip on 15th march is significant as it was on high volume, gapping down through the channel support and historical support. This is followed by two days of sideways that tested 2971 but failed to close above. Friday's movement is an engulfing price pattern and 2971 was tested yet again (nearly), but ended the day with a lower close.

What is the feel of the market? The clues that the market is giving shows downside biased ness still. As much as i am tempted, there is no need to jump the gun yet. I feel that it is better to ......