Digesting Gains

Digesting Gains Nishtar IT has been a quiet week for the stock market. The previous weekend low has not been seen again, nor has the week's high been crossed. While short covering and cautious selective bull support enabled the market to stage a modest rally, the general tone has continued to be rather shaky. The recent behaviour of the market is typical of the process of technical adjustment which it is required to undergo after it has moved a long way in one direction without a pause. In a bull market, when too much pressure has been generated on the upswing, a technical reaction occurs in much the same manner as the safety valve of a steam boiler pops.