The dollar is finding good resting place . I mentioned the parallel channel a few posts back.
Here is one very interesting chart. I have added the bollinger band in the daily chart for 34 period.
Everytime since nov 2010, when the markets came down hugely , it retraced for some days to touch the mid level bollinger band. These points are marked by down arrows. Then again it came down atleast 75% to touch the lower bollinger band. This time NIFTY has stopped exactly at the mid level bollinger band.
Lower Bollinger band currently stands at 4680 . That could be one of the target if we go down from here.
And then we have actually 2 GAPs to fill .
The dollar just pricked the channel support line and then is UP substantially . So are the US 30 year treasuries. If the dollar stays at the same place where it closed last friday , I expect Nifty to open at leats 50 points lower.