Monday, December 21, 2009

Markets testing range bottom. Will there be more sell-off ?!


On friday, markets broke the 5000 barrier and tested and closed near the crucial support of 4985 levels.

Looking at the unwinding in 5000 puts, and the heavy build up seen in 5100 and 5200 calls,  it now points to more of a downside move. 

Also there was a powerful intraday bull trap around the previous close level of 5042 and now that will be a hard level to cross for this series.

The build up in 4900 and 4800 put are also reasonably higher and so there might not be any major sell-off as of now.

Resistance levels : 5014, 5030, 5043


Support levels : 4980, 4957, 4942



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Happy Trading
www.tripleint.com

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