Index is breaking below the channel support but more importantly 1.3.2014 (9723) pivot has given up in our system due to which we believe Index has completed a cycle from 12.6.2013 (9235). This leaves us looking for a pull back in wave ( B ) which can reach as low as 9738 – 9891 which forms our green zone We don’t like selling the Index or buying at current levels but do like buying dips toward the green zone 9738 – 9893 for the next move higher. Market is dynamic and green zone is valid as far as 12.6.2013 pivot is intact in our system. If that gives up, then green box will no longer be valid.
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