The leading equity index rallied over the week, rising to 3588. This marked a new all-time high.
The rally to this level marks one of the fastest recoveries ever since the index fell to a three-year low in March this year.
The declines saw price testing the previous all-time high at 3389. Heading into Friday’s close, there was a modest pullback after testing this level.
This also marks the rising trend line being tested. A reversal off this level is required followed by a new all-time high. Failure to do so could either keep prices trading flat above the 3389 level or possibly a break down lower.
Below the 3389 level of support, the next key support is at the 3200 level. However, with the 50-day and 200-day moving average heading closer to this level, the declines could be limited in nature.