December 14, 2016

Neowave outlook of market (as of 12-DEC)

Failure to trade above Friday’s high of 26804 (Nifty 8275) could be the initial sign of maturity of b-leg rally ahead of US Fed Policy coming Wednesday. Thereafter, if the Index starts closing below its previous day’s low, it would turn the Daily bias -ve.

Remember, we considered that the b-leg started from 25718 (Nifty 7916), the low of 21st Nov’16. Inside the b-leg, Index still maintains higher top higher bottom formation on its Daily close-only chart, which defines an up-trend as per Dow Theory.

Inside the b-leg, Index has refused to retrace its rising segment fully in faster time, so far. By NEoWave, complete and faster retracement of rising segment is the next step to confirm that the +ve structure may be completing.

Thereafter, a larger structurally -ve sign would comprise of Index falling into a lower top lower bottom formation on the Daily close-only chart.

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