Will we break the falling channel?

We said 'The Indices are now trading between the 20EMA and the 50EMA.' And today too the Index bounced from the lower 50EMA and got capped at the 20EMA. The falling trendline also acted as the resistance to the upmove today. As you can recall, we covered all short positions yesterday. Accordingly the stocks that we track as good short candidates , opened badly and from then went on to close the day in the green, and in some cases up 3-4%. However the bearish stance on US markets continue. We will wait patiently on the sidelines to initiate new shorts. Key technical indicators will be - doji/hangman and long upper shadows.


India:
The good move on the US markets provide us with a good chance to break the falling channel that we have been talking abt. Though we closed in the red, our key level of 14300 was not broken. The falling channel will be convincingly broken at 14600. We will have a relook at new targets if the falling channel is broken.