Market Monitor: Bearish
- Monday rally was never a convincing one and so Tuesday's action was no surprise
- A 600 plus downside day has lot of sectors getting affected.
- The big down day has also triggered a worldwide sell off and a hint of panic. So in a very shorter timeframe there will again be a bounce. Orderly sell offs are good. Panicky ones tend to reverse.
- While selling continues, none of the readings on Market Monitor are anywhere close to extreme. If you see other things like The Worden T2108 or T 2118, they are hardly budging, so a divergence is developing.
- Same thing is visible on 65 days ratio where inspite of selling it continues to trade around 400 levels on positive side.
- Which again indicates the panic today might resolve to upside in shorter time frames. Which makes chasing shorts here a bit risky.
- While this action continues cash, sideline or holiday are the best options.
The solar sector got cooked yesterday and the Fertilizer sector had failed breakouts or ugly pullbacks on some stocks. The only sector with action currently is the defensive Medical sector. When you see Funeral Services in top 30 sector list , you know the state of the market.