Sensex makes a Key Reversal Day!

Sensex made a significant signal on 4th May, 2007 (Friday). The index opened higher than the previous trading day's high (14107.06) went on to make a higher high intra day and closed lower than the low of the previous day (13987.77). This makes this session a Key Reversal Day with the highest volumes in the recent rally from the 200 dma which is now at 12869. This can mean that the index may start trending downwards and 13650 is the level to watch. A close below this figure will have short term bearish implications and index can again retest the 200 dma. A close above 14400 will negate this bearish premise and take the markets to new highs.