Sensex Weekly Chart - Week starting 30DEC2002 upto Week ending 13JUN2008

As evident from this chart, the Sensex has closed below the 89Week EMA for the second time in the recent past and the 20W SMA as well as 21W EMA have closed below 34W EMA, which has not happened in the last 6 years or so.

So unless, we break above 15500 mark convincingly and close above 16480, we are headed for really tough times downwards, with an intial stop coming at 13890 levels.

In the first chart above, the 20W SMA when looked at alone is showing ominous signs of a H&S formation that is gathering momentum, with the shoulder-line at around 13700 levels, which is slightly below the current 144W EMA @ 14890. If this H&S comes to fruition, it is going to be blood-bath on the market and time-wise the bearish sentiment may continue for

Caution adviced. Cut your speculative positions. Weed out penny stocks from your portfolio. And take home your profits, if you are sitting on any still.

Cheers