Overbought conditions exist in most markets after a great start in January. In the previous Sensex update I pointed out the positive divergence in RSI and the possibility of a long term bottom. Now the market is overbought and at channel resistance. A different wave structure allows the possibility of a 'c' wave lower to complete a Double zig-zag correction. This move could fill the election gap from 2009.
Note that I have used an India ETF (INP), not the Sensex itself in the chart below.
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