There’s no doubt that it was a strong market rally for quite sometimes. For the past 3 days, we can observe that the stock market drop due to having healthy correction to its uptrend. Will the correction continue tomorrow? The probability is not that high as it’s already drop to the level where it’s great time for trader to initiate ‘LONG’ position.
Last Friday 21st Jan 2011 market closing at 1543 after dropping 24.5pts. Previously, many analysts and financial experts hope that the correction can drag the index towards the 1550 – 1540 levels as it will help to garner enough strength to break through the 1600 level. So, I think it’s time for the index hit next target which is breaking through the 1600 level.