The 16258.10 is a BULLISH REVERSAL, not BEARISH. The underlying Daily Bearish are 15340.00 and 15300.30, followed by 15095.00. Technical closing support lies at 16041.78. A closing back above this technical support will help stabilize the market. The broader support lies at 14769 to 14587. A closing below 15961.79 today would warn that we could make a new intraday low tomorrow, but today’s closing would still be the lowest if we close below 16258.
Keep in mind you DO NOT want too much of a bounce just yet. That will make people feel it is over. We are better off with a less of a bounce and some churning to maintain the bearish attitude. When you have too many people on TV saying just hold, it is not very good. It is better to see full blown capitulation to create the low.
Caution is still warranted and the closing will be critical. A closing above 15961.79 will help stabilize, whereas a closing just over 16042 will be better for now.
