Update: Markets find good support @ 19000 levels.

The last and the present week is one where the markets have shown very significant fluctuations.
Down about 1200 (about 6.5%) points in 3 days and back.
In the previous post, I had mentioned that the 19075 levels would be very very necessary to look out for.
http://thefallingwedge.blogspot.com/2011/01/sharp-correction-19000-levels-very-very.html

Thankfully the sensex held to that levels and bounced back sharply today.
Now it can be expected to move in the channel atleast for now.

A short term outlook will be attaining the 19950 levels. The oversold RSI indicates this.
Also an interesting thing to note for is that the sensex has got support for the THIRD time at these 19000 levels. Which means a bullish signal.
To sum it up, the fears of the crash now almost allayed, the markets will resume upward journey to cross its DMAs in days to come. But the ascend to the top may not be as fast as the descend that was observed.
Banks, Capital goods and Metals should be watched out.
More on individual recos later...