Nifty did cool off on December 10 and 11. Nifty movements today were wild- hitting a high of 5965 and then reacting 100 points to a low of 5865. Nifty had kept most traders guessing throughout the day,which is very much in keeping with the characteristics of a Uranus day.
Some more gyrations seem to be in store before we resume some more up movements.
The present 2nd wave of 5 ( of C of the Diametric D) seems to be exhibiting complex corrective behaviour.A leg up as b and a leg down as c should complete wave 2 in this time frame before wave 3 commences upwards. Our expected date for wave 3 is December 13.
That the second a of abc formation after x wave, reacted as much as up to 5865, is an early warning signal that the up trend is losing steam and the final topping is not very far away.
It is interesting to look at a fractal similarity seen in daily and 30 min charts of Nifty.
That the fractal in 30 min time frame looks compressed probably points out to the shortening time available for rest of the waves of Wave 5.Sudden sharp falls and increased volatility are hall mark characteristics of 5th waves.
Let us look at another long term fractal. That occurred in the Sensex between 1992 and 2003 and compare with the present period.
Will History repeat?