The decline in the Bovespa index in wave A was a clean impulse move (9 legs). In the recent pullback from the lowest point, Bovespa has retraced 50% of wave A. In yesterday's trading session, it closed below the 40DEMA along with the bearish crossover in the daily Rohit's momentum indicator. Closing below the 20DMA, currently at 109082, will indicate that wave C has possibly started. At 94970, wave a and c will be equal. On the way up, the recent swing high of 112709 will be a crucial resistance level to watch out for in the near term. The pullback may extend up to the 61.8% retracement mark if it closes above the highs of 112709.