After the big blast post the election results SENSEX technically has been in the correction phase retracing almost to the level of open on Monday (post results). This was further confirmed by lower lows being made for 4 successive days. The upmove was so rapid that the correction was not felt. The SENSEX had also completed its fifth wave and a correction was due. Normally after completion of fifth wave it should retrace atleast to around 38% of the entire upmove or to around 12,300 level. However this time during earlier moves it has not retraced so much and instead has flagged to the high and low points of big updays. Therefore there is a reason to believe that it should not breach atleast the open (13479) on last Monday. Todays smart rally strenghthens this belief. Moreover this time it has taken support of earlier resistance line. This gives us two support levels to rely on. The first being the new support line (please click on the chart to check out) and second being the open on Monday which is 13479 and if these levels are broken its time to go cash and wait for 12300-12500 and then the upmove.
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