The index made a high at 5009 that is the 38% Fib retrenchment from 5331 high made on the 4th Jan and 4804 low made on the 18th of Jan. The theory said that 38% is a level which could turn down the market if the trend is down. For that to happen the index has to take the low at 4804. An other scenario  is that could be a turn around or to take longer for the index to take the low. As today the index reversed, for this scenario to be valid, the index needs to fall no more than one to three days then to take the high at 5009. Tomorrow is the first day, and by Tuesday or Wednesday next week the index should be at a new high. We’ll see.

27_01_2016_D

Overall, the index made a nice base in daily, but it’s on a strong resistance formation to overcome as can be seen on the chart.