On the 25th we saw the
Index started a rally with a good effort to move up Bar on high volume. The
next day we saw the index scale new heights with another Effort to move up bar
with above average volume. However this
week the index has not been able to make much head way. We saw a very
interesting bar on the 31st. We saw a small spread down bar on very high
volume. This bar indicates that supply tried to overwhelm the Demand. However demand
put up a great resistance and as a result the spread remained small. Still the
day belonged to supply as indicated by the down close. Overall this week the demand failed to move
the price up much in spite of great effort.
This Effort to result ratio does indicate weakness. Normally when much effort
fails to get the desired result the general tendency is to step back and come
back later with renewed strength. We have a similar situation and looks like a retracement
would follow. This would only give more opportunities as the overall uptrend is
very much in place and the index will seek newer highs.
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