Market Update - July 14th

The last time I posted, I said that there was a good chance to go down and retest the lows at a minimum and also a good chance of going down to 3600-3650 area...Until Friday noon, things were looking decently bullish...Then the rest of Friday kinda damaged the bullish look...even though a very wounded bull...Now the bull is really wounded again...

Lets take a look at the daily below...MACD has turned up...However Friday action makes me very cautious..remember that the MACD is a lagging indicator...Positive crossings should not be trusted in a bear market..and we are in the heart of the bear for sure.

Now the weekly below...Stochastics have turned up..would have looked much better if it was not for Friday...But its not above 20 yet and until this happens, we cannot be bullish..yet..

Wait for the weekly red stochastics line to turn up above 20, then we can go for a short-to medium term buy...

If I were to harbour a guess and based on the chart posted in the post below this one - Remember I had marked in there that we have one more downside wave...I think its started...We do not know at this point how much it can go..But let us see if 3850 area will hold first...If we fail this, then we go straight to 3650-3600 area...and maybe a bit more lower than that...But this should hold.

US market also in the doldrums right now...Almost done but not quite...Just like us...Some more downside and panic to come...For sure...

I think we get some carnage and lots of panic in beginning of week...and then stabilization towards end of week...Lets see....

Best.