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Summary

  • Long term outlook: Up
  • Medium Term Outlook: Down
  • Short Term Outlook: Sideways to Down
  • Long Term Revision Point: Break below 2252
  • Potential Longer Term Targets: 6357 and above

The market has so far progressed as expected. There is no change in our outlook for the current report. Attached is the image of the latest position of the market with the text from our previous report:

Without any significant change in our outlook presented in the previous report, we are expecting the potential corrective rally to exhaust around the 5170 to the 5200 mark, completing what we have marked as wave 2.C. If this is correct, we would expect to see the start of a potentially third wave sell off, which is likely to be stronger and longer than the witnessed from January 6, ’10 high to the February 8, ’10 low. However, for our count to remain valid, the index should not break above the January 6, ’10 high at 5311.

A break above the January 6, ’10 high is likely to force a major revision to our short and medium term outlook.

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