At present, the rebound move does not appear to have invalidated the large top that formed with a neckline at 3,300, which coincides with the 100-day moving average at 3,299, establishing this zone as a resistance. If the market is weak - which it is likely to be - the index is unlikely to reach 3,300. This is because directional movement indicators are negatively placed with ADX rising as DIs are negative. In addition, quarterly momentum is in negative territory and has yet to bottom.
Support stays at 3,165 for the time being. The next important level is at 3,150 as it is the year's low. This level needs to hold because if breached, it could turn out to be the neckline of a double top.
