I posted about markets showing a topping signal on May 6 and my concern is still there. If you paid attention to my levels you must remember that since then both S&P 500 future and Nifty Future could not manage to break those big resistance levels -
- S&P 500 Future: 6 May high - 918; 7 May high 928; 8 May high - 927.50 !
- Nifty Future: 6 May high - 3729!
- For both index futures price level could be as accurate as it can be - just one point below my resistance levels!
- S&P 500 F Support: 887, 871, 860. If it goes below 971 and trades there for few sessions then my fear of topping markets will confirm further.
- Nifty Future Support: 3560, 3500, 3450. If it breaks 3500 on closing basis then 3450 may become weak support. We need to watch that level very carefully.
- Resistance for both these are at the same levels as in my last post, i.e., 929 for S&P 500 and 3730 for Nifty Future. If these resistance levels are broken with supporting volume, then we can see further rally in coming days.
- Of the two markets, Indian Markets look stronger. However, I have not seen such an overbought market since this Bear Market started in January 2008.