For the past 4 trading days, the market has been linggering between 2120 to 2210 levels. Does this indicate that the market is still in the sideways phase? It seems that the market would still be moving between these levels unless the levels 2220 or 2110 are breached. As for this situation, the strategy that is recommended to be used is to sell where you are supposed to buy and vise versa.
In the long run, the market is still bullish but the very very short run, the market is bearish. The forecast for today;
1) If the market opens between 2153 to 2178.
`` 1.1 Buy after the market has moved up passing the level 2184 to 2190. It would be more significant if the market opens more towards the upper part of the 2184-to-2190 levels.
`` 1.2 Sell after the market has retraced passing down the levels between 2142 to 2148. It would be more significant if the market opens more towards the lower part of the 2153-to-2178 levels.
2) If the market opens between 2140 to 2152. Sell after the market has gone up a bit and then falls 5 points after the opening level or sell after the market has touched the level 2168.
3) If the market opens between 2184 to 2192. Buy after the market has dropped to the level 2163.
4) If the market opens other than the above, it is your call.
5) Please refer to #6 ( see posting dated 12th January 2009 ).
Well, if you are not sure, as usual, do refer to your broker/dealer.
Have a nice trading day!!!