The Nifty is back into a range - with a breakout at 5370 and a breakdown below 5250. We should expect a move out of this narrow band, sooner rather than later.
Meanwhile, the S&P500, the U.S. Index broke down trading below a significant support at 1040. This is the fourth time that the S&P has come down to test the 1040 support. Just as a breakout above 5400 will be a bullish signal, so also a breakdown below 1040 for the S&P will be a Sell signal.
Meanwhile, the story has started that 'This time it is different' for India, since we are going up while the world is going down. My own sense is that it is never different. We will follow the world markets, sooner or later. I am not saying we will go down. But, our markets will align with the other markets. If world markets begin to go up, maybe we will be rangebound till they catch up with us. or, maybe we will see a sharp sudden decline to catch up with them. I cannot say. But, we are not decoupled.