The Test of the Low is nearing its successful completion

On July 17, I have posted a piece on the test of the low for our market. In it, I have written that I would considered a test of the low successfully completed when the index recovered above the 20-day MA i.e. when the CI surpasses the 920 level. On closer examination, that level is about 923 (see the Chart below). At 11.00 a.m. today, the CI touched a high of 922.77 mark. Losers outnumbered gainers 290 to 212 while volume of shares traded is about 227.5 million at 11.54 p.m.

We will see whether the CI will re-test the 923 level later and surpass it. If so, the market's current correction could be over.

















Chart: CI's weekly chart as at July 20