In my post on Monday, March 16, I had laid out several levels to watch out for in S&P 500 of US and NSE Nifty of India. Let me present my views as the markets showed interesting moves.
S&P 5oo Future:
In that post on 16th Mar, I stated that 779 is going to be good resistance and 749 to be good support. For two - three days S&P 500 Future traded in that range and on two occasions it took support at 749! (on 16th and 17th March). Yesterday it managed to break the upper ceiling of 779 and so far its trading above that. Now, the resistance of 779 has become support and as I had stated in that post it can be touching 804 and then 838 or so in short term, provided it doesn't break 779.
The Indian NSE Nifty index future gave nervousness to bulls for two days but it has also managed to save 2730 so far. The way Nifty Future traded yesterday and today, I have the feeling that bears are getting weak. The only thing bad for bulls so far is that they haven't been able to penetrate that 2855, the upper ceiling according to my view as stated in 16th Mar post. If bulls manage to get near that level in coming sessions I would preferably stay away from shorting (changed my 16th Mar view!) Not because there is some indication for long, but, because the way it is trading is not suitable for bears to jump in right away.
Now, I'd like to wait for a conclusive move either past 2850-55 OR below 2730, before that I advise caution for both camps.