A Successful test ?

With the American markets rallying nicely overnight, we can assume that India will not be left behind. Then, the small dip yesterday (Tueday) was a pullback in the ongoing uptrend. The dip was in fact a (successful) test of the up move.
If the Nifty is able to close above 2800 resistance, we may see it advance slowly to the next resistance level at 2950. But, for traders, there is no need to do such forecasting. Just follow the market momentum, which happens to be up.

Remember, the long term trend is down.We are in a bear market.

Gary Shilling, who correctly forecast the housing bubble has this to say: (courtesy John Mauldin, Investorinsight.com)
The deepening recession and spreading financial crisis is the beginning of the unwinding of about three decades of financial leverage and spending excesses. The process will probably take many years to complete as U.S. consumers mount a decade-long saving spree, the world's financial institutions delever, commodity prices remain weak, government regulation intensifies and protectionism threatens, if not dominates. Sluggish economic growth and deflation are the likely results.