February 3, 2014

Market outlook

While broader trend is down, markets are near important supports which also happen to be psychologically important big round numbers. Accordingly we have increasing open interest at 6000 strike price even though markets closed in the negative.

The open interest position implies limited downsides whereas the increase in VIX today shows fear at current levels. Let's see what markets do now.

On a different note, we have formation of a minor swing high at 6100 levels. Immediate support still remains at 5970 spot. If this breaks, then severe problems.

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