April 25, 2014

Weekend update

Possible trend reversal on EOD charts as markets close below 3 days' low. Next week, a fast close below 6640 will mean confirmation of trend reversal.

Note that there were warnings of this for past week days... smaller bars, no blast off rally at new highs, option writing pointing to strong resistance at 7000 and possibility of a deep correction (without breaking 6000).

Current OI points to resistance at 7000 and support at 6500-6000.

The correction coming on a Friday means more weakness next week (personally I find Friday close very important from a trading perspective).

On a bullish note, VIX dropped and advice decline was mildly negative.

Weekly charts point to possible reversal with support at 6600.

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