On Friday we broke convincingly below the balanced profile from 24/04 we had talked about in this post here : http://www.vtrender.com/content/04052012
The open below the CHVN's ( composite High volume node) of 5212 and the CHVN of BN at 10130 was to be confirmed with a break below the range at 5166/55 which was done resulting in big volumes below it.
The result was two distribution patterns or a DD day.
When the market makes a DD or even a trend day , the market is telling us that it is operation beyond the First standard deviation of prices. Hence the traditional definition of the value area does not fit in completely and the distributions need to be seen in market time not clock time.
Hence we look at the value areas differently as pointed out in the charts.
For continuation the market needs to stay and auction below the lower bell curve to continue the short term trend which is down.
The longer time frame chart ( http://www.vtrender.com/content/04052012) is also now in a state of imbalance and trending lower.
Generally speaking the market after spending time away from a balance zone tends to come back and test the boundaries for unfinished business. This re-test of the lower zone around 5155-5165 should be part of your trading plans with care being taken to see that the markets stays below that trading range.
Acceptance back in that trading range increases the possibility of a CHVN visit currently at 5212 where the seller can come back again.
Lower down we have two HVN's at 5050/ 5010(00) which should provide temporary support.