Will the new highs sustain?

We made a new high on the Sensex. However before we get into a discussion on that, let's look at the US markets.

The DOW closed up abt 45points. The narrow 20EMA-50EMA band that we spoke about has been broken. However, as we have maintained, we still maintain a bearish view. Previously we said we will change our stance only on hitting new tops. However we are going to change the view slightly. We will now go bullish again on breach of the trendline(refer Chart). Giving it a slight leeway, the new mark for the DOW will be 13710 . We still remain highly cautious and still maintain that we will open up the Wave C downwards shortly.



India:
The new highs that we had been talking about, has been made. As peviously stated, we will now look for topping signs. The new target to monitor will be between 14950 - 15100. Once any of this has been reached, we will monitor for topping signs. A suggested strategy will be to sell calls instead of buying puts. However we will watch the action instead of building our own conclusions. Take a look at the chart below for some understanding of crucial resistance and support.