Strong performance for our market in the last week, set to continue but not without a pull back. Looking at the monthly chart below, the index tested the trend line from the low of the last June in 2014 (like a one year anniversary).


The first low though came in on the 30th of June after five waves down and a retest on the 9th as a small false break at 5383 (false breaks are powerful reversal signals). Also, it broke out the downside channel. Now the index regained 50% of the down move close to 5694 and is due for a pull back. To continue this advance the pull back should not be more than 25% at 5616 or 38.2 % at 5576 area which became support with 200 MA at 5595.