- McClellan Index in bottom section of the chart continues its descent as well as remains below EMA(59) & MA(100) suggesting more stocks are declining and less stocks are advancing
- Nifty has dropped below MA(100) & MA(200), this might turn into change of direction. Also MA(100) appears to have aligned with MA(200) and might crossover anytime now which would be bearish
- Mutual Funds - By now you should have closed any position in equity funds as markets are showing signs of rollover. Hopefully, you would have identified debt/bond funds to remain invested once the market changes its direction.
- Stocks - Take partial gains on open positions and have strict STOP LIMIT or trailing STOP on remaining position. Entering new positions might be risky unless the pattern is very convincing, however do not forget to have STOP LIMIT in place. In volatile times, its better to remain in cash.
Market appears to be changing direction, be cautious...