CI testing the 900 mark.

At 10.00 am, the CI was at 900.21 i.e. dropping 13.42 points from last Friday's close of 913.63. The 900 level is a strong psychological support level & I do not expect it to give way without a fight. However, I am not sure that this level would hold out for too long. I am working on the assumption that the market is now doing the test of the low and this means that the market may go near to the June low of 883 (see Chart 1).


















Chart 1: CI's daily chart as at July 14

The Mesdaq has fallen by 4.39 points to 114.88 at 10.00 am. You can see that last Friday's sharp fall has broken the Mesdaq's short-term uptrend line at the 125 level. The next support for the Mesdaq is either at its medium-term uptrend line of 108/109 levels or the horizontal support of 111 level. The 111 level represents the lower end of the gap created on June 26 when Iris' designation was removed. This action sparked the sharp rally on the Mesdaq until last Friday.


















Chart 1: Mesdaq's daily chart as at July 14