Q:- WHY THIS CORRECTION IS BIG ?
ans:-because it is 5 year old correction.
don't for get every third correction is big correction.
if first correction of 200 point 12 days ,
second correction of 300 points 10 days than third should of 300 points 12 days,
THUMB rule is take the last two corrections biggest value of points and biggest time period.
this correction had taken biggest % points and time frame of last its kind of two similar
big time wise and valuwise corrections.of 2003,2004.
If this correction is not the fifth wave correction and as some Elliott wave practitioners says it is fourth wave
than also it has to correct for above mentioned TIME PERIOD minimum.
Q:-WHEN WILL THIS CORRECTION PROBABLE END TIME?
ans:-This correction will end most likely at second or third week of may.
applying above mentioned rule this correction of 33 to 35 % and 89 days from the start of 8th January's.
this is minimum requirement.IT CAN BE MORE than this value.
but without this minimum req.this correction should considered unfinished.
IF this correction is fourth wave than it can max at 44% and time period with global mkt.
Q:-WHAT IS THE PROBABLE DATE FOR CONSIDERATION OF END OF THIS CORRECTION?
ANS:-We should keep the date 16 may 2008 in our mind for the probable end of this correction.
it is exactly 89 th day from the start of this correction start date of 8th January's.
AND IT IS FIBONACCI NO.
IF THIS CORRECTION NOT END AROUND THIS DATE BECAUSE OF GLOBAL FACTOR ONLY,
THAN IT WILL LAST FOR MORE 55 DAYS.
55 DAYS MORE AND TOTAL 144 DAYS , BOTH ARE FIBONACCI NO.
Q;-WHY WE INSIST FOR 3636?
Ans:-Because 3636 value follows A=C formula.90%corrections follows this formula.
our A 6357 TO 4545 =1912 POINTS
So C should 1912 down from 5545 (B POINT,) this gives tgt of near 3636.
and present structure of wave suggest 4450 is not the bottom.
IT IS ALSO 50% FIBONACCI RETRACEMENT OF TOTAL UP MOVE OF LAST FIVE YEAR UP MOVE.
Q:HOW I CAN IDENTIFY THIS IS THE PROBABLE END OF CORRECTION?
My study of last corrections says every last move of corrections or say end of corrections with high down days or down weeks.
this is not happen yet.
so, keep the last 700 to 1000 nifty point quota for last THREE DAYS, ONE WEEK TIME correction days only.
means mkt will remain time pass pause mode after reaching 4600,4450 TO 3600 JOURNEY.
,and it will go down 700 to 1000 point in just 3 to 4 last days of this correction.
if market want to make bottom at 3636.
another important factor to watch is heavy discount in nifty.
study of last corrections says me end of every corrections with heavy discount for nifty future prevailing at that time.
which is also not seen yet.
this probability will end if mkt start up from here and reach at 5360,5400,and pass more time there.
THAN ONLY IT WILL FORM BOTTOM AT 4450.
Q:-WHY MKT IS HIGHLY VOLATILE?
ANS:-As mentioned above mkt want to pass time only because it is vary near the end and we are ahead of global mkts also.
,it has to pass more five week here at this leval to complete 89 days,
we ar at 64 days from the start of this correction.and has to pass more 25 days.
untill completion of 89 days this correction should not considered as completed.
so it will make heavy up down on daily or intraday basis.mkt will paas lots of time here.to consume 25 days.with last quota of
1000 nifty points on hand,for last days heavy down.
than once it can touch 4100,4200
again one up move possible up to 4600,
after this,, final down move will start for 3600.4000
another
important factor to note is start of bottom fishing from institutional side.possible.
institutional slow buying at this level will rtesult in up down in intraday.
Q;-WHEN WILL MARKET CAN TOUCH OR CAN MAKE NEW HIGH?
ANS;-well,it is all depends on global markets.but all past corrections study says market will try to make new high as possible as early.
almost, after all corrections market had made new high between next 1 to 6 months.6 months time is highest time taken.
ELLIOT WAVE ALSO Says market has to make new high as possible early,
other wise it should considered as heavy bear macro economics correction time ahead.
from this point of view market can touch 21200 again before next December.
Q;-WHAT IS THE OTHER CONCLUSION OF THIS STUDY OF PAST CORRECTIONS?
ANS:-1.every year has big correction,no any year is without big convincingly good correction.
2.almost all corrections happen at the first half of the year.
3.almost all years second half is vary bullish phase.
4.end of the every corrections with heavy down days.
5.continue up move without any convincing rest(minor corrective ) phase after every correction over.
6.almost all with world cues.and match with worlds other charts.
