Index nosedived by -1097 point or -2.34% on a weekly closing basis, honoring the divergence which has been evident on the charts for last few weeks. Closing was observed below the pivot of 46100 +/- 100 signaling further downside. Support, as indicated earlier, remains intact at 45500 - 44700 +/- 300 and the floor is at 43800 +/- 100 - a previous major pivot zone. While the index has gone through two correction cycles earlier, its momentum remained intact and the key differentiating factor of the current correction wave is rapidly weakening momentum. This may cause the market to move range-bound in the short term which will be frustrating for day traders but an opportunity for bear hunters. So oil those guns and get ready for the hunt as bears come out of their winter hibernation, we shoot'em down one by one!
In an alternative universe, a breakdown below the major pivot zone would be doomsday; but we assign very little probability to that. Bears simply do not have enough firepower to break that line of last defense!