Market has witnessed heavy volume selling in last 10 days. The cumulative breadth ratio has gone below .5. That indicates 2:1 selling pressure.
Such selling tend to result in counter trend reflex rallies. Those rallies can often last for days or weeks. Many of them can fail. If the bounce is supported by significant breadth then it might be worth noticing.
At this stage we have had 6 to 8% correction. Next big catalyst is 4 weeks away. The next earnings season will start in 4 weeks. Till then market might continue in bearish range.
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