The market actually opened on a positive note with the Sensex at 4076.23 (the previous close on Monday was at 4082.83). Therefore, the opening provided a correction for starters, to the fall in prices at the NSE on Tuesday. The index also rose to a day's high of 4085.76, which was short of Monday's high of 4138.21. But significantly, the high opening could not be sustained after midnoon, as prices started heading south.

The index also failed to put up any resistance at the level of 4050, which is an important point. The low for the day was at 3964.95 and the Sensex closed the day at 3970.28. Day-on-day, the loss was 112 points. So far astechnical indicators are concerned, the stochastic indicator reveals that the market is slowly approaching the oversold level. The indicator is at 22.13 with the trigger line at 21.86. In common parlance, there is scope for a brief recovery in the immediate sense.

On the other hand, trading on Thursday will be marked with end of account considerations. That might trigger covering by short sellers at BSE. On the other hand, NSE operators could continue to sell short as prices rise. There would be tussle in intra-day price movements. Considering the above, it would be better for you not to take long positions now for trading considerations. Getting out of scrips at which you are still in profit would still be the right thing to do. Take advantage of any recovery to sell at higher levels. There is a word of advise for small and long-term investors. While the quick indicators had already signalled the end of the bull season, the longer signals too have now signalled that long term investors should exit themarket now. If you had not already exited, you would naturally hesitate to get out now. But think it over deeply. The market is going down. In any case, the indicators advise you to postpone your long-term targets to a later date!