Nifty sell signal last Thursday- what lies ahead?

Last Thursday, Nifty gapped up in the morning and eventually broke out from a range triggering a buy signal. However, by the afternoon, it dipped back into the range closing the opening gap, thus producing a buy failure.

A similar setup occurred on 7th of May this year, that resulted in a steep decline of over 1K points over the next 4 days.

Banknifty had a similar buy failure last Thursday after breaking out from a range the previous day.

Midcap Index had a 1-2-3 breakdown on Thursday, with the pattern high on Tuesday forming a Double Top with the prior pivot high.

Smallcap Index formed a Dark Cloud Cover last Thursday that looks part of a 1-2-3 Top pattern in the making after breaching the previous pivot high, a buy failure.

The IT index is just above a very crucial support level ~26200 for the past 7 weeks and looks all set to breach this level. The metal index broke below a H&S pattern last Thursday. The other sectoral indices have either given a sell signal or look weak on the charts.

Will the Indian market break down next week? The charts seem to be suggest exactly that and are talking the same language across sectors. The US markets have also given a sell signal last Friday.

The global markets seem to be aligned. The timing seems immaculate. Only time can tell hat happens next.

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