Possibility of circuit?

If I say there would be a circuit down on sensex coming, this may be exagurated, but I wont be surprised if there is a panic on Tuesday 3rd November for indian markets. On Friday sensex failed to sustain the initial gap up because of US rise on Thursday. Intrestingly Dow itself made faster retracement by falling 250 odd points against thursday's rise of 200. It shows that there may be more fall coming on US market on Monday. Also there is CIT bankruptcy looming on US market. This may cause dow to fall on monday, so there is every possibility of big gap down on tuesday in India.

16k to be crucial for sensex

As mentioned in previous blog, sensex is showing head and shoulders pattern im 30 minutes chart, if it is so, the neckline is already broken and currently sensex is near crucial support of 16600, if sensex breaks 16600 the next level would be 16400-16500 and then 16000. 16k is also previous top and it is the target of head & shoulder retracement taking from top 17200.
However sensex can take support at 16k keeping the bulls hope alive, but if it breaks there will be panic we can see levels much below.Even if sensex holds 16k and tries to move upward the rally is becoming weaker and weaker.

head & shoulders in sensex half hourly chart?

See at the right side of the image, it looks like and head and shoulder in half hourly chart of the sensex, if it breaks the neckline, there it can prove disaster for the sensex.