So far the Indian markets decline has stayed within the bounds of a correction and much similar to the previous two corrections – roughly a 12% drop from the highs.
Nifty Daily chart - Source Bloomberg
However this time around, there are a few variations. There has been considerable technical damage in many of the world indices and some have even topped out.
More importantly, one of my derived indicators that I use to measure the health of the indian markets, came very close to throwing a market top signal. And this will be the indicator I will be keeping an eye on for the next few days to a few weeks.
Indian Economy barometer - data and charts bloomberg
This indicator has a stellar track record – it either leads or is coincident with the market topping out process. Obviously, I will not reveal what or how this indicator is derived 🙂