The unwinding of the overbought positions continued yesterday and the fear factor of Jan 27th of 2021 played a phycological effect on some investers who gave into their fear factor and gave up their profits and some got spooked and sold to minimize their losses , while others had no choice as they have been up to their neck in the free broker credit or at top of their margins and are not in control of their portfolios due to over extending on credit/margin.
There is also signs of some seasoned players executing a Stratergic trading pattern to trigger margins of some HNIs who may have leveraged on their large holdings and used the funds to flirt with some selected counters that are less fundamentally strong but moves on tweets or FB recomendations . So the current situation seems it will remain a few days , possibly a week or two for a factory reset of the system. We can comfortably
Conclude that the market shall not move much higher without LOLC BIL and Expo getting back to their winning prices seen early January. However the overall market uptrend is still the stronger pattern and we can expect a faster pace of it once the pigs are somewhat fully slaughtered
