On September 21, 2021, we said the following of the Sensex Index:
“The Sensex has reach a point of exhaustion based on the historical precedent established in 1994, 2000, 2004, 2006, & 2010. This doesn't mean the party is over, as the prior years prove. Just that there will be some temporary churn or downside risk from this level..” (found here)
Since that time, The Sensex Index has traded in a range to the current level of 52,793.62.
Below is an update to the Velocity Indicator for the Sensex Index.
Our data indicates that the low we have not yet reached the 2009, 2012, 2016, 2020 lows.
As super conservative investors, we would like to see the 2009, 2001, 1988 lows. However, we’ll likely have to say that when/if the index achieves the 2012 or 2020 levels then you have no choice but to add to your previous positions that you’re compounding on already or make new investments with anticipation of lower levels in the index, just in case.