Sharp correction – 19000 levels very very crucial to watch out for… Even for Long term investors

The Sensex has tanked almost 1000 points in last 2 trading days.

1000 POINTS !!! - This cannot be merely due to a rate hike fear which should have long back factored into by a minor correction.

All the stops might have been hit up to the fall that followed till today.

Obviously no fresh money can be deployed till the next support levels.

One can see on the charts how on Friday the 50 DMA is broken and today the 100 DMA.

On the charts, the 19075 levels is very crucial to watch out for below which a real carnage should follow. The markets should then proceed to break the 200 DMA support too which would mean panic selling for the long term investors too.

Should the markets get support here, it will be a bounce back up to the channel.

With the RSI in the overbought zone and the earnings season coming up from 13^th (Infy), it will remain to be seen if they provide any respite to the falling markets.

For now, it’s a journey southward.