1. Dow Jones - It is making lower tops but making higher bottoms at the same time.It has retraced successfully from the top of 12900 levels and on its way upto test 12600 where the current trend line is placed. As one can see the lower part of the trend line is placed at around 11100 levels and only below that Dow's down ward move is confirmed.
The trend is still range bound with a negative bias and has to come below 11100 levels to confirm the downtrend.
2. DAX - The German index is also moving at par with the Dow and there would be a trend line resistance placed around 6600 levels.Unlike Dow it has broken higher bottom formation and broken major support levels.DAX has also retraced 61.8% and bounced back from there.
3. FTSE - This is one of the major markets where the bear market is still active as it has retraced 100% from its previous top. For the time being it can be considered as a double bottom formation but is expected to correct soon.The upside cap would be around 5900 levels.
Conclusion: These charts show you if we compare these 3 charts with Nifty our index is the only one which has retraced more than 100% and consistently making lower tops and lower bottoms.Thus if we compare it with the world markets we cant rule out a possibility of Nifty crossing 5330 and marching towards 5600 but by that time the world markets would be forming multiple tops and that would definitely act as a hindrance. If the world markets take out the trend line supports it would be altogether a different game. (Instead of Dow , S & P 500 would give us a better result but unfortunately i could not upload enough data into the software)
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