IndiaCharts

Inter Market Analysis

Inter market analysis is a series of articles studying related segments of the market to identify lead lags between trends in each segment. This can often forewarn you of impending changes in trend and allow for planning of required action based on it. For example midcaps v/s large caps, currencies v/s commodities and US markets v/s European markets and so on. In a global environment inter-market relationships are not restricted to a country but between countries and their respective asset classes as well.

BSE IT index

The decline in the BSE IT index has been slow and I would have liked to see a clearer trend i wave C down but so far the upper end of the channel has managed to push prices lower and we should stick with this view. The index closed below the 40dema today as well. The lower end of the channel is at 9561.

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US 30yr Bonds

US 30 year bonds are in the early stages of a rally. At a larger degree this is a counter trend move and will develop into A-B-C but for now we are in wave iv of a or 1 of a. The chart shows a triangle in wave iv. So we should push higher still into wave v up next.

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Morgan Stanley

The five wave decline on the daily chart of financials like Morgan Stanley is very clear. It means that after a brief bounce back in price, new lows should be in store.

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